--> GPRO -18%
GoPro falls to all time lows after cutting Q4 guidance: Analyst color on warning
- Wedbush cuts target to $18 from $33. They note the HERO4 Session has been a problem since its launch in early July. In early Dec, the price was cut for a second time to $199, but the second price cut apparently didn't stimulate sufficient to allow GoPro to approach Q4 top-line guidance. It also appears to have hurt gross margins, although they did note some discounting of other HERO4 capture devices in Q4 as retailers tried to improve sell-through. Current Q4 guidance implies roughly break-even EPS or a loss. They lower FY16 rev to $1.885 billion and EPS to $1.30 (consensus $1.88 bln and $1.16); Outperform.
- Barclays downgrades to Equal Weight from Overweight
- Northland Capital target lowered to $20 from $39
- Piper Jaffray cuts tgt to $9 from $15
- FBN downgrades to Sector Perform from Outperform; tgt lowered to $11 from $30
- JMP cuts tgt to $21 from $90
- GPRO down 20% at all-time lows; company now has $1.6 bln market cap, roughly equivalent to FY15 sales.
- The co's initial Q4 guidance was also below consensus.
- Supplier Ambarella (AMBA) is down 9%