GoPro Tanks Again, Analysts Maintain Dismal Outlook

On a day when GoPro Inc GPRO is down another 5.5 percent as the earnings hangover grows, two firms have reaffirmed guidance. Oppenheimer is maintaining its Underperform rating with a price target of $35, while Citi is keeping its Neutral rating with a $48 price target.

The analysts are unanimous that GoPro reported a blow-out quarter, but are more concerned with the future.

Citi said that it is leaving its FY15 revenue estimate, though will add in an additional $13 million of operating expenses, bringing Q1 EPS estimates down to $0.17 from $0.23. With the February lock-up expiration and questions over the COO’s resignation looming, Citi noted that the shares could drift lower in the near-term.

Oppenheimer is much more bearish on the stock. The analysts outline three main factors underscoring their thesis: (1) competition from other companies with better technology expertise; (2) limited market expansion opportunity; and (3) weakness in the ecosystem. The analysts expect GoPro to report FY16 EPS of $1.18, a $0.10 decline from prior estimates.

Shares traded recently at $44.55, down 5.54 percent.