GoPro Drops After JPMorgan Cuts Rating, Citing Valuation

NEW YORK (TheStreet) -- Shares of GoPro (GPRO) are falling after JPMorgan downgraded the stock to Neutral from Overweight based on valuation concerns. GoPro develops mountable and wearable cameras.

Watch the video below for a closer look at GoPro's downgrade plus more of Thursday's analyst actions:


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WHAT'S NEW: GoPro has risen 137% from its IPO price of $24 and the stock should not be bought at current levels, JPMorgan analyst Paul Coster wrote in a note to investors. However, the analyst continues to believe that GoPro remains dominant in the action camera sector and he says that it could launch new cameras ahead of the holiday season. Consequently, Coster does not recommend that investors sell shares of the stock, as he believes that the shares are as likely to go up as they are to go down. He kept a $51 price target on the stock.

WHAT'S NOTABLE: Coster believes that GoPro's stock may have risen recently partly on speculation that the company could benefit from the growing push for police officers to use wearable cameras. After speaking with GoPro's CFO, however, the analyst thinks that GoPro's opportunity in this area is "quite modest." A number of other companies that provide cameras and related services to police forces have moved higher in recent trading, including Digital Ally  (DGLY) and TASER  (TASR) .

PRICE ACTION: In early trading, GoPro fell $2.30, or 4%, to $54.56.

Reporting by Larry Ramer.

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