The stock market’s rebound following a disastrous opening to 2016 has been impressive. However, some analysts believe that the market bounce has created selling opportunities in popular stocks GoPro(GPRO), U.S. Steel (X) and Mobileye (MBLY).
Within the last month, Wall Street analysts have said they now see at least 35% downside to each of these names. Here’s a rundown of the bear cases:
GoPro (GPRO)
GPRO is unquestionably one of the most hotly-debated young companies on Wall Street. GPRO shares were down more than 45% year-to-date as of early February. But GPRO recently spiked 20% after the company announced that former Apple (AAPL) design veteran Danny Coster is joining the company.
Piper Jaffray analyst Erinn Murphy, however, was not impressed. In addition to criticizing GPRO’s recent “air pocket of innovation,” Murphy pointed out that camcorder ownership is in decline. Less than 1% of teens placed GPRO cameras on their wish-list in Piper Jaffray’s recent semi-annual Teens Survey.
On April 15, Murphy maintained her “Underweight” rating on GPRO and her $7 price target, which suggests 46% downside for the battered wearable action camera maker.
U.S. Steel (X)
U.S. Steel is…
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