GoPro Falls Most in Six Weeks After Morgan Stanley Downgrade
GoPro Shares Fall Off Cliff On Weak Demand
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GoPro Inc. slumped the most in six weeks after Morgan Stanley cut its rating and price target on the stock, based on slower consumer pickup of drones and a later rollout of its next-generation action camera.
Morgan Stanley analyst James Faucette reduced his rating to underweight and set a price target of $12, down from $23. GoPro plunged 9.6 percent to $17.31 at the close in New York, its biggest drop since Oct. 29. The stock is down 73 percent this year.
“Likelihood that high inventory persists into 2016, slower consumer drone opportunity, and later assumed HERO 5 compels us to cut estimates,” Faucette wrote in a note to investors.