GoPro Shares Slide Premarket As Goldman Sachs Downgrades To Sell

Goldman Sachs on Monday downgraded shares of GoPro Inc. stocl to sell from neutral, citing the many challenges facing the company as the core action camera market becomes saturated, including product launch issues in the holiday season and a disappointing entry to the drone market. Goldman lowered its stock price target to $6 from $9.50. "We expect GoPro to continue to struggle fundamentally," analysts wrote in a note. "In its core action camera market, the company exited a disappointing holiday season with excess inventory, as noted by key supplier Ambarella . It also faces a new competitor, YI Technology, whose products are competitive with GoPro's but at a $100 (25-33%) lower price point." The company's recent restructuring may hamper its ability to differentiate through content, said the note. GoPro shares were down 3.3% premarket, and are down 63% in the last 12 months, while the S&) 500 has gained 19%.