GoPro's stock drops after analyst slashes rating, price target
GoPro Inc.'s stock slumped 3.1% in premarket trade Friday, after the wearable action-camera maker was downgraded at RW Baird, which cited increasing concerns over the lack of sales growth. Analyst William Power cut his rating to neutral, after being at outperform for more than eight months. He also slashed his stock price target in half to $18, which is 4.9% below Thursday's closing price of $18.93. Power said his research suggests there hasn't been a meaningful pickup in camera sales, which was confirmed when one of the company's top suppliers--Ambarella Inc. --gave a disappointing revenue outlook for the current quarter. GoPro's stock has tumbled 49% over the past three months through Thursday, while the S&P 500 has gained 6.7%. "We acknowledge the recent stock weakness and high investor skepticism, but with consensus estimates likely to fall further and no clear near-term catalyst, we are moving to the sidelines," Power wrote in a note to clients.
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