GPRO,...GoPro -7%, Morgan Stanley cuts target to $35, reports weak Session checks
After a fresh round of checks for GoPro's (NASDAQ:GPRO) tiny Hero4 Session camera, Morgan Stanley's James Faucette has cut his target by $27 to $35.Faucette: "[O]ur most recent checks were decidedly more negative as customers prefer the Silver’s LCD screen and superior video quality over the Session’s smaller form factor.
Commentary by management at recent investor events confirm that Session has been a difficult sell at the same price point of its historically favorite HERO4 Silver model."He also argues GoPro's recently-updated video editing tools still aren't as good as those found in other iOS/Android apps, and that media and software are "unlikely to move the needle" relative to hardware sales.
Worth noting: GoPro recently cut the Session's price by $100 to $300 in an attempt to boost sales. Shares already sold off last month after CFO Jack Lazar suggested the Session is having a tough time competing with the Hero4 Silver and Black.
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