What Does Wall Street Think Of GoPro Now?

Shares of GoPro Inc (NASDAQ: GPRO) are under pressure on Thursday after the high-definition camera maker released weaker-than-expected fourth quarter guidance and stated that it would cut 7 percent of its workforce.

Shares were trading down about 16 percent and have been on a downtrend since August. Here's a look at what Wall Street said Thursday morning.

Chowdhry: GoPro Is 'Declining Asset Business,' No One Would Touch In M&A

The analyst said, "Our views on GPRO have remained unchanged to what we presented on October 28, 2015, February 07, 2015 and February 05, 2015…Many kept telling...Drones are coming, it's a media company etc etc....basically investment thesis were being built on imagination."

Chardan Capital Expects GoPro To Weigh On Ambarella

The firm expects a drag on Ambarella Inc (NASDAQ: AMBA) to continue until GoPro offers visibility on turnaround of the consumer segment.

Related Link: GoPro Now Trades At Bargain-Bin Valuation Metrics

FBN Securities Downgrade To Sector Perform, Lowers Price Target To $11

The firm wrote, "We had expressed that the company made a mistake in not introducing a HERO5 in C2015, and after the large share price decline throughout the year we were willing to give the company a pass on slightly weak results in FQ4 as we had expected the company to benefit from a strong HERO5 cycle later in 2016 due to there being roughly two-years of pent-up demand."

Piper Jaffray Maintain Underweight, Lowers PT To $9

"Sell-through rates were challenged throughout the quarter but particularly in the earlier part. We believe trends were toughest in November," the firm wrote. "The price pressures the brand has faced of late, which have been expressed in our research in addition to the telegraphed re-pricing of the Session, created material margin headwinds."

Raymond James Maintain Outperform, Lowers PT To $30

The firm forecasted slow growth, especially in its wearable action cameras. The lack of new camera products for the past holiday season also contributed to the company's deceleration in growth.

JPMorgan Maintain Overweight, Lowers PT To $21

Wedbush Maintained an Outperform on GoPro, Lowers PT To $18

"Q4 revenue is expected to be roughly $435 million, well below our prior estimate of $550 million, the guidance range of $500 – 550 million, and consensus of $512 million. Q4 revenue includes a $21 million reduction for price protection charges from the December HERO4 Session price cut. Q4 non-GAAP gross margin is expected to be 34.5 – 35.5%, below our prior estimate of 46.6% and 48.0% in Q4:14."

Northland Securities Maintained Outperform, Lowers PT To $20

The firm believes that it would be appropriate for Apple Inc. (NASDAQ: AAPL) to consider buying GoPro for its video and virtual-reality technologies.

Sterne Agee CRT Maintained Buy And $21 PT

The firm sees problems originating from the company's flawed 2015 product strategy. Sterne Agee also sees Hero 5 as an H2 2016 bullish catalyst.

JMP Securities Maintains Outperform, Lowers PT To $21

The firm is unaware of when growth will resume. JMP Securities sees GoPro shares risk/reward as positive, given its steep decline in share price and the awaited launch of new products.

Barclays Maintains Equal-Weight And $12 PT

"After the weak 3Q results and 4Q guide, we stuck with our long-term OW view given the opportunities we saw in 2016, including better software, initial drone launches, and the emerging 360/VR opportunity. Our view that 3Q was a one-off and the company was focused on execution was reinforced at our December conference, when CEO Nick Woodman stated "we gaffed."

Morgan Stanley issued an Underweight rating with a $12 PT

"GoPro preannounced Q4 results on Wednesday afternoon, guiding for Q4 revenue of $435mm, which is below management's previous guidance of $500mm-$550mm. Management cited slower than expected sell through at retailers and a $21mm contra-revenue charge for price protection."

GoPro has lost 72 percent in six months. The stock recently traded at $12.25, down 16 percent on Thursday morning.