GoPro Slips as Citigroup Cuts Outlook for Camera MakerMichelle F. Davis
GoPro Inc. dropped after Citigroup Inc. cut its earnings forecast for the maker of wearable cameras, reigniting concerns that it may be a single-product company.
Shares of San Mateo, California-based GoPro fell 1.3 percent to $57.91 at the close in New York time, sliding for a third day, the longest losing streak since early May.
Fewer U.S. consumers plan to buy a GoPro device in the next year, Citigroup analysts led by Jeremy David wrote in a note Wednesday, citing a survey. The growing popularity of drones may eat into sales of GoPro’s flagship action camera, according to the analysts, who lowered their estimate for earnings per share this year to $1.55 from $1.66.
“The faster the growth of the drone category, the higher the risk of a slowdown in the action camera category,” said David, who reiterated a neutral recommendation on the stock.
Seeking to capture share of the drone market expected by Piper Jaffray & Co. to balloon by $3 billion by 2020, GoPro revealed last month that it is developing a video-capturing drone.
Shares of the company, which went public last June, have fallen 8.4 percent since the start of the year while the Nasdaq Composite Index has rallied 7.2 percent.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.