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Pro Analysis

Sell GoPro on action camera market 'saturation,' Citi says

GoPro CEO Nick Woodman
Photo by Josh Edelson
GoPro CEO Nick Woodman

Citi Research initiated coverage on GoPro with a sell rating, saying the action camera maker will continue to lose money the next two years and disappoint investors.

"GoPro's market-leading action cam products are not enough to overcome the overall decline in standalone imaging products (camcorders / cameras) and increased saturation in mature markets like the US," analyst Stanley Kovler wrote in a note to clients Thursday. "In the absence of significant topline growth, the company has started to focus on operating expense control, but breakeven remains at least 2 years out, in our view."