Analyst Erik Woodring from Morgan Stanley maintained a Sell rating on GoPro (GPRO – Research Report) and increased the price target to $0.50 from $0.30.
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Erik Woodring has given his Sell rating due to a combination of factors impacting GoPro’s financial outlook. Despite the company’s efforts to reduce operational expenses significantly, with a notable decrease in operating expenses year-over-year, GoPro faces ongoing challenges in its revenue streams. The company is experiencing pressure from weakening consumer sentiment and spending, alongside heightened competition, particularly in the Asia-Pacific region. These factors contribute to a projected decline in units and revenue for 2025, with second-quarter revenue guidance falling below consensus expectations.
Furthermore, while GoPro’s management hints at potential growth opportunities through new product launches and expansion into new markets, these initiatives are not expected to materialize until 2026. The company also faces additional hurdles such as tariffs and demand issues, making it difficult to predict a turnaround in the near term. Consequently, Erik Woodring maintains a cautious outlook, expressing the need for more evidence of topline stabilization or growth before adjusting the rating, and has set a lower price target of $0.50.