You are here: Home » Reuters » News
Business Standard

GoPro shares slip again as analysts warn of market saturation


(Reuters) - of Inc fell again on Tuesday after analysts warned that its products face increasing market saturation, a day after the said it was open to a sale but was not actively pursuing one.

of the company were down nearly 5 percent at $6.25 in premarket trading, but a far cry from the heavy losses suffered on Monday when it announced plans to exit the drone business, cut jobs and lower its fourth quarter revenue estimate.

After that announcement, the crashed 33 percent to a record low of $5.04.

is battling waning demand for its sports cameras and drones.

"The increasing power and presence of have negatively impacted sales of GoPro's products, with its pace of innovation unable to offset creeping market saturation," wrote in a note.

The global demand for GoPro's products cannot get higher than what it already is and the San Mateo-based company should acknowledge the reality, said in a note.

Wedbush cut the price target on the to $6 from $10.50 and Dougherty & Co's Charles Anderson, who has a 4-star rating, trimmed the price target by $3 to $4. has a median price target of $8.50.

"It isn't clear that they have much of a strategy beyond selling more HERO cameras. I'm not sure investors will warm up to the story until they demonstrate some traction with sales growth," said.

GoPro's closed down 13 percent on Monday, paring the earlier losses after reports that it had hired to help it with a sale process.

(Reporting by and in Bengaluru; Editing by Bernard Orr)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 09 2018. 18:32 IST