GoPro Soars After Brokerage FBR Puts It on Apple's Wish List

  • Tesla, Adobe and Box also make list of possible targets
  • GoPro announces Apple Watch features for quick wrist videos

GoPro Inc. rose the most in more than seven months after an analyst’s report suggested the action-camera maker would be a good acquisition target for Apple Inc. next year.

“With $200 billion of cash in the coffer (and growing), we can finally envision Apple making a larger acquisition,” Daniel Ives, an analyst at FBR & Co., wrote in a note to investors.

GoPro is among four companies Ives says could be potential targets for Apple. Adobe Systems Inc., Box Inc. and Tesla Motors Inc. -- a long shot, Ives said -- round out the list.

“An acquisition of GoPro would make sense for Apple,” Ives said. “Action cameras are uniquely positioned at the intersection of Apple’s smartphone, wearables, and multimedia offerings.”

Ives rates Apple outperform and doesn’t have a rating on GoPro.

Other product announcements Thursday also contributed to renewed investor interest in GoPro, suggesting collectively that the company is moving away from it’s one-trick-pony status. San Mateo, California-based GoPro introduced Apple Watch features in its app, that allows quick access to the camera’s controls from the wrist. The company also gave a name to its new drone, Karma, which was announced in May and is slated for release next year.

“The subject is changing towards their next big growth driver,” said Andrew Uerkwitz, an analyst at Oppenheimer & Co. “It’s got people excited.” He rates GoPro market perform and Apple outperform.

GoPro surged 12 percent, the most since April 29, to $18.83. The stock has lost 70 percent over the past year as concern mounted that it was a single-product company, facing tough competition from Apple and others.

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