GoPro (GPRO) PT, Estimates Cut at Cowen on Signs of Inventory Overhang

Cowen maintained a Market Perform rating on GoPro (NASDAQ: GPRO), and cut the price target to $18.00 (from $24.00), following negative AMBA commentary, and another HERO4 price cut. Per commentary on AMBA's 3Q call, weakness in the wearable sports camera market is expected to persist through 1Q17. The HERO4 Session is now priced 50% below the original launch MSRP of $399. GPRO has maintained strong gross margins since introducing lower priced models, including the $129 HERO HD.

Analyst Robert Stone commented, "Following negative commentary from key supplier AMBA ($57, NR) and another price cut for the HERO4 Session, we are cutting estimates for Q4:15/Q1:16 and lowering our PT to $18 (vs. $24). The next positive trigger may be the drone launch, which we believe is more likely to be in Q2:16 than Q1."

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 $18.00 yesterday.

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