There has been a recent shift in sentiments of Street analysts for GoPro Inc (GPRO) stock as it crashed more than 50% YTD
GoPro Inc (NASDAQ:GPRO) stock closed at $8.80 yesterday, down about 2.11% against the previous day’s close. The stock has crashed nearly 51.12% since the start of this year through May 18, 2016 and has massively underperformed the S&P 500 Index’s gain of about 0.18% during the same time span.
There has been a recent shift in the Wall Street analysts’ sentiments in the San Mateo, California based manufacturer of action cameras. The analysts’ buy ratings on the stock turned into hold ratings as they sensed factors which would hamper GoPro’s financial performance.
During the past week, GoPro’s video chip partner, Ambarella Inc’s (NASDAQ:AMBA) stock witnessed a cut in price target by the analysts at Pacific Crest. The analysts curbed the 12-month price target to $53 from $62, while maintaining an Overweight rating on the stock.
The cut in Ambarella’s price target at Pacific Crest came on the heels of GoPro’s inventory corrections which showed an inventory pile-up due to sluggish demand. Along with this, the action camera producer faces fierce competition from LG’s standalone action cameras. In addition to this, GoPro is Ambarella’s biggest buyer of video chips, and as both the company’s stock price movement is tied so closely, it will be vital to examine the action camera manufacturer’s move to get on track its failing business in attempts to broaden its stagnant customer base.
Out of a total of 18 analysts, five analysts believe the investors should long the stock. Another 11 analysts recommend to Hold, while the remaining two analysts rate the stock a Sell.
The 12-month consensus price target on the stock is $11.32, carrying an upside potential of almost 29%.
Stephen Turner of Hilliard Lyons – an investment firm at the Wall Street – has the most bullish stance on the stock. The analyst believes the investors should buy the stock for long term and his 12-month price target on the stock is $17.
In comparison to Mr. Turner, Piper Jaffray’s analyst Erinn E Murphy holds the most bearish sentiments in GoPro stock. He believes that stock will underperform the market and projects the stock price to tank to $6.5 during the 12-month period.