Consumer Electronics
Are GoPro Downgrades at the Bottom Too Late to the Party?
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GoPro Inc. (NASDAQ: GPRO) has gone from one of the hottest stocks in the market to just another flailing consumer electronics company. At least that is what you would think if you just watched its stock performance in 2015. When you get two new analyst downgrades, while shares are at post-IPO lows, some investors may panic — and others may say this could be marking a bottom.
Monday’s downgrade in GoPro came from Morgan Stanley. The firm lowered its rating to Underweight from Equal Weight, effectively lowering its rating to “Sell from Neutral,” based on equivalent calls at other large firms. What stands out here is that GoPro was just downgraded on Friday by Citigroup. That firm’s downgrade was to Neutral from Buy. Another downgrade was seen by R.W. Baird back on December 4.
What may really stand out here is that the Morgan Stanley price target was slashed to $12 from $23 in Monday’s downgrade. That is the lowest target on Wall Street, with Thomson Reuters having the lowest price target for GoPro shares prior to this at $15. When Citigroup downgraded GoPro on Friday, it was to a price target of $22 per share, down from a prior $75 target in a not-too-timely manner.
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