On Tuesday, shares of wearable action camera maker GoPro Inc. GPRO are popping, up over 8% in morning trading after the company looks to have sold more cameras than expected during the recent holiday season, according to Pacific Crest analysts.
In a note, analysts Brad Erickson and Elliot Arnson said that "Checks indicate the fourth quarter turned out better than feared, which could give GoPro a near-term reprieve given high short interest and negative sentiment."
As a result of GoPro's good holiday season, Pacific Crest, raised fourth-quarter estimates to 1.9 million units to 2.1 million units. The analysts also added that the company's premier product, the $799 Karma drone, should begin to ship again in the second quarter of fiscal 2017; GoPro had to recall the drone last November after battery issues led some to lose power mid-flight.
Pacific Crest maintains its Sector Weight rating on GPRO stock, and sees fair value between $9 and $10 per share.
GoPro is set to report fourth-quarter earnings after the bell on Thursday, February 2.
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