GoPro (GPRO) Sinks as Analyst Highlights Intense Competition

GoPro (NASDAQ: GPRO) is lower Thursday (-5.1%) following cautious comments from Citi analyst Jeremy David after hosting Giovanni Tomaselli, Founder and CEO of iON Cameras (#2 action cam OEM after GoPro), on the IoT/Wearables panel of the Citi Global Perspectives Conference yesterday.

David notes iON claims to have the most comprehensive product portfolio in the action camera market with 10 different cameras (including dedicated models for fishing, hunting, and motor enthusiasts). "iON has expanded from 150 stores last year to 6,000 this holiday season (including 2,100 Wal-Mart stores) and is on track to get to 10,000 stores in 2015. iON just launched a connected home camera, entering a market that could be 2/3rds the size of the action cam market in 2017," the analyst commented.

"Our discussions with the CEO of iON leave us incrementally more cautious on GoPro with 2015 revenue growth of 22% in our model potentially at risk given a likely slowdown in the category post the HERO4 launch and increased competition which could put pressure on ASP/ mix," David said.

He reiterated his Neutral rating on GPRO stock.

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 $62.76 yesterday.

You May Also Be Interested In