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NEW YORK (TheStreet) -- Shares of GoPro (GPRO) were falling 9.9% to $27.57 on Wednesday after Morgan Stanley cut its price target for the action camera maker to $35 from $62.

The analyst firm maintained its "equal weight" rating for GoPro, according to Business Insider.

Morgan Stanley analyst James Faucette said that checks of GoPro's HERO4 Session "were decidedly more negative," citing customers' prefernance for the LCD screen and better video quality of the Silver over the smaller camera.

"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," Faucette wrote. "Disappointing demand culminated in GoPro announcing its decision to reduce the price to $299 last week, a $100 discount from the $399 price point when the product was launched in July."

The analyst added that GoPro's new video editing app isn't as good as other options on iOS and Android. Faucette expects GoPro cameras to "remain a niche alternative" to videos shot on smartphones, with the company's overall growth eventually slowing and falling in line with the larger digital camera market.

TheStreet Ratings team rates GOPRO INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate GOPRO INC (GPRO) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GPRO's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 67.25%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • GOPRO INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.80 versus $0.77).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 276.6% when compared to the same quarter one year prior, rising from -$19.84 million to $35.03 million.
  • GPRO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GPRO has a quick ratio of 2.06, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 47.81% is the gross profit margin for GOPRO INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.34% is above that of the industry average.
  • You can view the full analysis from the report here: GPRO