GoPro shares fall the most in two weeks on Tuesday, Morgan Stanley downgrades the stock to “Underweight”

GoPro was reportedly downgraded to “Underweight” from “Equal Weight” by Morgan Stanley due to limited earnings power. The bank also revised down its price target for the stock to $5.00 from $9.50 previously.

GoPro shares closed lower for the first time in the past three trading sessions on Tuesday. It has also been the steepest daily loss since January 9th. The stock went down 2.86% ($0.18) to $6.12, after touching an intraday low at $5.89, or a price level not seen since January 8th ($5.04).

In the week ended on January 21st the shares of the tech company added 0.96% to their market value compared to a week ago, which marked the first gain out of five weeks.

The stock has extended its loss to 19.15% so far during the current month, following an 11.36% slump in December. The latter has been a third straight month of losses.

For the entire past year, the shares of the NASDAQ-listed company fell 13.09% following another 51.64% drop in 2016.

“Improvements in camera usability have not been able to sustain demand, and with limited earnings power, we think the market is giving too much credit to GoPros strategic value”, Morgan Stanley analyst Yuuji Anderson said in a note to clients, cited by CNBC.

“Whether by itself or within another ecosystem, GoPros value is tied to its usability, and its earnings power remains at risk at the current pace of functional improvements”, Anderson added.

According to CNN Money, the 8 analysts, offering 12-month forecasts regarding GoPro Inc’s stock price, have a median target of $6.75, with a high estimate of $9.50 and a low estimate of $4.00. The median estimate is a 10.29% surge compared to the closing price of $6.12 on January 23rd.

The same media also reported that 10 out of 13 surveyed investment analysts had rated GoPro Inc’s stock as “Hold”, while 1 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the GoPro stock are presented as follows:

R1 – $6.15
R2 – $6.17
R3 (Range Resistance – Sell) – $6.20
R4 (Long Breakout) – $6.27
R5 (Breakout Target 1) – $6.36
R6 (Breakout Target 2) – $6.41

S1 – $6.09
S2 – $6.07
S3 (Range Support – Buy) – $6.04
S4 (Short Breakout) – $5.97
S5 (Breakout Target 1) – $5.88
S6 (Breakout Target 2) – $5.83

By using the traditional method of calculation, the weekly levels of importance for GoPro Inc (GPRO) are presented as follows:

Central Pivot Point – $6.35
R1 – $6.55
R2 – $6.80
R3 – $7.00
R4 – $7.19

S1 – $6.10
S2 – $5.90
S3 – $5.65
S4 – $5.39