Investing.com – GoPro closed lower on Monday, after Goldman Sachs downgraded the company to a “sell” from “neutral” amid concerns that GoPro's core products are in a saturated market.
Shares of GoPro Inc (NASDAQ:GPRO) slumped 9.5% intraday, as Goldman Sachs lowered its price target for GoPro’s shares to $6 from $9.50.
"GoPro faces significant challenges following saturation of its core action cameras market, product rollout issues in the holiday season, and a disappointing entry into the drone market," analyst Simona Jankowski wrote in a note to clients Monday.
Goldman’s downgrade of GoPro came fresh off the heels of a downgrade issued by Citi Research last Friday, as Citi warned clients the technology company will continue to lose money over the next two years.
GoPro shares have tumbled more than 40% over the past year, on the back of disappointing top-line growth as well as a stumble in the launch of its drone device, ‘the karma’, which was pulled off the shelves following mechanical failures.
Last year GoPro announced a company-wide restructuring plan that would reduce full-year 2017 operating expenses to approximately $650 million and achieve its goal of returning to profitability in 2017.
This restructuring plan includes the closure of its entertainment division, facilities reductions, and the elimination of more than 200 full-time positions (approximately 15 percent of the company’s workforce).
GoPro slumped 8% to close at $8.14.