Wedbush Downgrades GoPro (GPRO) to Neutral Following Karma Recall

Wedbush downgraded GoPro (NASDAQ: GPRO) from Outperform to Neutral with a price target of $9.00 (from $12.00), noting too many missteps including the Karma recall.

Analyst Nick McKay commented, " We are downgrading shares of GoPro to NEUTRAL from OUTPERFORM, and lowering our 12-month price target to $9 from $12 to reflect ongoing execution issues and the Karma recall. Our revised price target reflects 0.85x our lower FY:17 revenue estimate, down from 1.0x before. We had previously recommended the shares on valuation, as we expected financial performance to improve as supply caught up with demand. A series of missteps has forced us to re-evaluate our thesis, and we are no longer willing to recommend GoPro shares at current levels."

For an analyst ratings summary and ratings history on GoPro click here. For more ratings news on GoPro click here.

Shares of GoPro closed at $10.86 yesterday.

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