Barron’s Expect GoPro Inc. Could Decline To $ 25

According to the financial investment organization, Barron, GoPro Inc. could show a fall to $25 in future.

In the last three months, GoPro Inc.’s stock has suffered a fall by 40%. A number of stock specialists from Wall Street persist bullish on the company’s stock. Indeed, Jeremy David, Citi analyst, expected that the current downturn indicate an enticing entry point. On the other hand, the financial magazine, Barron’s, affirmed on Sunday that “danger lurks” on the camera company because other competitors have joined the HD camera market.

Alexander Eule from Barron’s expects that GoPro stock could show a decline by 28% to $25 again. He measured the company at same scale as BlackBerry Ltd., Palm, and Flip that reigned the market once before decreasing to ashes.

Since October 2014, share market of San Mateo based organization has fallen from the maximum level of $98 to $34 at its lowest level currently. Its rise is no longer going the roof, but its risk remains constant.

Rob Lopez from Vertical Group, a research firm, acknowledged the “secular and Structural concerns” regarding the camera manufacturers are still flawless. Jack Lazar, the Chief Financial Officer of GoPro Inc. (NASDAQ:GPRO), assured in the starting of this month about its brand new release that its Hero 4 did not get the soaring response from its customers. Moreover, the Vertical Group anticipates that the company’s earnings will show upward variation by 12% in the upcoming year.

Financial investors have been fearful regarding the company’s capability to counter competition. During the month of January, the American camera company suffered from a decline by 12% or more. The reason behind the fall was that Apple Inc. was granted a camera relevant patent.

The company from China, Xiaomi, has released its HD action cameras. So far, the new camera from Chinese company is performing as well as GoPro Camera, and the Chinese camera is much economical as compare to the American camera. It is expected that this difference would hurt GoPro’s market and its development efforts around the world.

Another issue for the US camera-manufacturing business is that it relies on Sony Corporation for image sensors, which places it in a susceptible spot. The Tokyo-based company, Sony, has its own spectrum of 4K and High Definition portable action cameras. No doubt, GoPro has released a number of innovative brands and maintained its reputation in the international market.

GoPro is a significant and developed market brand. The rising competition in photography has also presented challenges to the company. Apple might not be interested in buying it though.