Analyst Downgrades: GoPro Inc, SolarCity Corp, and BlackBerry Ltd

Analysts downwardly revised their ratings on GoPro Inc (NASDAQ:GPRO), SolarCity Corp (NASDAQ:SCTY), and BlackBerry Ltd (NASDAQ:BBRY)

by Andrea Kramer

Published on Oct 19, 2015 at 10:08 AM

Analysts are weighing in on wearable camera concern GoPro Inc (NASDAQ:GPRO), alternative energy issue SolarCity Corp (NASDAQ:SCTY), and phone maker BlackBerry Ltd (NASDAQ:BBRY). Here's a quick roundup of today's bearish brokerage notes on GPRO, SCTY, and BBRY.

  • GPRO is down 1.3% at $28.15, after a price-target cut to $50 from $76 at Wedbush. The brokerage firm said it expects "another quarterly earnings beat" from GoPro Inc next Wednesday, Oct. 28, "but the magnitude of the upside may be smaller than in past periods due to softening demand for unimpressive new products." Furthermore, Wedbush lowered its fourth-quarter earnings estimates for GPRO, but conceded that the recent "sell-off is overdone." GPRO has surrendered more than half its value since mid-August, and just touched a record low of $26.68 last week, as more analysts turned bearish.
  • SCTY has surrendered 3.6% to sit at $42.54, after Axiom Capital reportedly initiated coverage with a "sell" rating. The shares could be headed for a test of the round-number $40 region, which contained pullbacks in late August and late September. What's more, Solar City Corp could be vulnerable to even more negative analyst attention; 11 out of 12 brokerage firms maintain "buy" or better opinions, despite the equity's year-to-date loss of more than 20%.
  • BBRY is sitting on a 1.8% loss at $6.99, after Macquarie trimmed its price target by $1 to $7, and echoed an "underperform" opinion. Since its most recent rejection in the $10-$11 neighborhood in June, BlackBerry Ltd has struggled on the charts, hitting a post-earnings low of $5.96 late last month. As such, it's no surprise to find that pessimism prevails on the Street. Just four of 20 analysts offer up "buy" or better opinions, and short interest represents two weeks' worth of pent-up buying demand, at BBRY's average pace of trading.
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