Shares of GoPro Inc. slid 14% in early trade Thursday, as analysts weighing in on earnings said the holiday season will be crucial for the company to meet goals. The wearable camera maker posted stronger-than-expected third-quarter numbers, but guidance was below consensus, disappointing investors. Raymond James analyst Tavis McCourt maintained a market perform rating on the stock, and said the quarter was “good all around.” With more product launches coming in 2018 “and a path to meaningfully increased profitability next year, we suspect the company has its operations moving in an appropriate direction,” McCourt wrote in a note. “However, this trend will depend on the success of the holiday quarter, and the 2018 outlook could change meaningfully if holiday demand does not meet expectations.” J.P. Morgan analysts said the company is still operating on “less than full-throttle” with lean inventory to achieve predictable growth, boosted profitability and rebuild its balance sheet. “GPRO stock might trade down a bit today on the weaker-than-expected 4Q guidance, but this will present a buying opportunity ahead of a de-risked 4Q, CES and easy 1Q18 y/y comps, in our view,” they wrote in a note, reiterating an overweight rating on the stock. GoPro shares have gained 5% in 2017, while the S&P 500 has gained 15%.
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