Shares of GoPro (GPRO) are on the rise after the company announced an exclusive global partnership with Red Bull this morning. Stifel analyst Jim Duffy believes that the economic benefit of this agreement to GoPro is uncertain and a deal reaching beyond the core action sports customer would prove more “incremental.”

GLOBAL PARTNERSHIP: GoPro and Red Bull announced they are joining forces on a multi-year, global partnership that includes content production, distribution, cross-promotion and product innovation. As part of the agreement, Red Bull will receive equity in GoPro and the action camera maker will become Red Bull’s exclusive provider of point-of-view imaging technology for capturing immersive footage of Red Bull’s media productions and events.

CEO COMMENTS: During an interview on CNBC, GoPro CEO Nick Woodman said there is “so much more” that can be done with Red Bull as an official partner, adding that Red Bull is getting “less than 1%” of company equity in the partnership deal announced this morning. Woodman also acknowledged that the company has to do a better job communicating its vision and added that he is “motivated” by the slide in GoPro’s stock price.

ECONOMIC BENEFIT UNCERTAIN: While GoPro’s partnership with Red Bull makes logical sense from the standpoint of content distribution due to the large overlap in brand fans, Stifel’s Duffy believes GoPro needs to build the equity of the brand beyond action sports to drive demand for capture devices. The economic benefit to GoPro from the newly-announced partnership is uncertain and does not change the outlook for the action camera maker to lose money and burn cash in this fiscal year and in the next, the analyst told investors. Duffy noted, however, that Red Bull’s equity stake in GoPro could incentivize dedicated efforts between the companies to drive mutually beneficial outcomes. The analyst reiterated a Hold rating on GoPro’s shares.