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By Sam Boughedda
Investing.com — Despite a retreat from its $12.18 high of the day, GoPro Inc (NASDAQ:GPRO) shares are still in the green after a bullish call from Morgan Stanley.
Analyst Paul Chung upgraded the stock to overweight from neutral, raising the price target to $15 from $13.
Chung attributed the upgrade to strong execution, the number of additional products sold on the company's website and increased prices.
In a note to investors, the analyst said the factors will see "gross margins structurally higher, increasing revenue visibility, smoothing out revenues in the longer term" and ultimately driving record free cash flow in 2021. He said free cash flow is on pace to be greater than the cumulative performance since the IPO.
The analyst added that GoPro's management team is working hard to drive subscriptions higher while keeping retention rates high on expanded offerings.
GoPro shares are currently up 1.82% at $11.76 per share.
Last week, Morgan Stanley upgraded the stock to equal weight, also citing its improved execution and outperformance in subscriber churn.