GoPro just downgraded at Morgan Stanley, here’s why

Morgan Stanley downgraded GoPro to Underweight from Equal Weight with a price target of $3, down from $4.20. Since reporting Q3 earnings on November 7, GoPro has been the best performing name in the hardware group, outperforming the S&P 500 by 30 points, the analyst tells investors in a research note. The firm says that while the Q3 earnings did show some success with its go-to-market transition, GoPro remains a “show-me story” over the next few years. It believes estimates are biased lower and the stock’s valuation is “too rich” at a five-year high.