JPMorgan downgrades GoPro on softening consumer spend - InvestingChannel

JPMorgan downgrades GoPro on softening consumer spend

JPMorgan analyst Paul Chung downgraded GoPro to Neutral from Overweight with a price target of $6, down from $9. The company’s Q4 guidance “missed materially,” driven by currency and a reduction in inventories at big box retailers, Chung tells investors in a research note. The analyst says gross margins are expected to be well under GoPro’s long-term margin targets. He believes investors will need to wait until the second half of 2023 for a rebound back in margins. Chung downgraded the shares on the “tough” macro backdrop, softening consumer spend, and limited catalysts ahead for GoPro.

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