Shares of GoPro Inc. fell more than 2.5% in premarket trade Wednesday after Morgan Stanley analysts nearly halved their 12-month price target on the stock, saying disappointing sales of the Hero4 Session are a "harbinger of future disappointments." The analysts axed their stock target to $35 from $62 and reiterated an equal-weight rating. Recent checks regarding demand for GoPro's tiny new camera were "decidedly more negative" than they had been when the product launched in July, they said. Last week, GoPro cut the price of the camera to $299, from $399. The analysts also railed into GoPro's editing software, saying that while certain features on the GoPro mobile app are "steps in the right direction," many of the features already exist elsewhere on iOS and Android. Without compelling differences in software, they said, "GoPro devices will remain a niche alternative to smartphone video capture and growth will continue to slow and fall in-line with the broader digital camera market." Morgan Stanley is one of the most bearish brokerages on GoPro. The average rating on GoPro is overweight, and the average price target is $65.25, according to a poll of 18 analysts on FactSet. Shares of GoPro were on track to open down around $29.85. Its stock is down more than 41% over the last three months, vastly underperforming the S&P 500, down just 5%.
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