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GoPro not done cutting estimates: Goldman

Camera maker GoPro is probably not done cutting estimates, even after a sharp warning Wednesday sent shares plunging, Goldman Sachs said.

GoPro shares fell as much as 28 percent in after-hours trading after the company said it would cut 7 percent of its staff and warned on worse-than-expected sales.

Goldman, in a note to clients, cut three years' worth of earnings estimates and slashed its price target on the stock nearly in half.

The firm noted that the charge GoPro was taking for excess inventory was small relative to the inventory the camera maker actually has.

"We remain on the sidelines in the near term as it appears unlikely this will be the last estimate cut, given the relatively small amount of inventory reduction," Goldman said.

GoPro shares have been battered amid weak sales and repeated price reductions for one of its newest products. The stock peaked in the low-$60s range in early August and has lost 80 percent of its value since.