Sales of GoPro Inc.’s Hero4 are off to a “slow start” and may cause the action camera maker to miss earnings estimates in the third quarter, said Citi analyst Jeremy David in a note to clients on Thursday. The analyst, which cited comments from GoPro CFO Jack Lazar at Citi’s Global Technology Conference last week, said he is also expecting GoPro to reset the bar lower for the fourth quarter, and doesn’t see upside for GoPro’s stock until that happens. Things look brighter for 2016, however, with the launch of new GoPro products, such as its quadcopter and the Hero5, and David said he believes GoPro will benefit the most from virtual reality and drones over the long term. He reiterated a buy rating on the stock and $90 price target. Shares of GoPro fell 1% to $35.40 in premarket trade. They have fallen 39.5% over the last three months, vastly underperforming the broader S&P 500, down 5%. The company did not immediately respond to a request for comment.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News