Consumer Electronics

Original GoPro Bearish Analyst Still Sees More Downside

Shares of GoPro Inc. (NASDAQ: GPRO) had a rough week prior to Friday, with a boutique firm’s research report causing the stock to hit all-time lows. On Friday came another research report signaling further uncertainty for the remainder of 2015.

Oppenheimer’s report came from Andrew Uerkwitz, Martin Yang and Paul Dean. With a Perform rating, effectively a Neutral or Hold rating at other firms, Oppenheimer has no price target. Still, it sees an unclear picture into the rest of the year.

With the manner in which GoPro shares have performed over the past 52 weeks, the report says that an investor should be wearing a GoPro to capture the adventure: “… as the chart represents a death defying downhill run, or if we look just at the past 8 weeks, a base jump.”

With issues such as the upcoming earnings later this month, deciding how holiday sales will go or how the 2016 estimates may change, Oppenheimer’s report says it would rather make the base jump. The firm said:

We can point to as many positives as negatives. This note should serve as a primer for the most important items to think about into and out of the quarter. We also update our model with lower fourth quarter of 2015 and 2016 estimates.

After initiating the company with a bearish outlook in 2014 (at $80.09 by the way), the Oppenheimer team finds many conflicting factors that may swing sentiment either way. Among these are some of the following issues: average sales price trends are unfavorable, and those average sales prices may have peaked in 2014 (due to an early discount on Hero4 Session and the lack of flagship model refresh). Oppenheimer now expects that GoPro will offer a new round of discounts to Hero4 Black and Silver into the holiday season.

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