Shares of GoPro (GPRO) are sliding after the company reported worse than expected quarterly revenue and guidance, which sparked two new downgrades to Underperform, a sell-equivalent rating, by research firms Baird and Raymond James.

RESULTS: Last night, GoPro reported fourth quarter earnings per share of 29c, which was better than the 22c expected. However, the company posted revenue for the quarter of $540.6M, below consensus estimates of $574.54M. The action camera maker also said it sees first quarter revenue of $200M, plus or minus $10M, which is also below consensus of $264.5M.

SELL GOPRO: In a research note this morning, Baird analyst William Power downgraded GoPro to Underperform from Neutral, citing disappointing first quarter guidance despite the relatively new HERO5. Moreover, the analyst told investors that given the guidance, which he sees as aggressive, ongoing questions about its addressable market and the less than $2 per share in cash the company holds, the rating needed to be revised downward. Speculating if any buyers would come "to the rescue," Power noted that it is always possible, particularly given GoPro's action sports brand strength, but acknowledged that it is tough to know for certain who that might be or at what price. The analyst also lowered his price target on the shares to $6 from $10. His peer at Raymond James also cut his rating for GoPro to Underperform from Market Perform. Analyst Tavis McCourt pointed out in a research note of his own that the company's results were "weak on the top line" but beat his earnings estimates, as it started to "make dents in its cost reduction efforts." However, McCourt noted that first quarter guidance was well below expectations, which he believes is a reflection of sell-through trends that were weaker than he had assumed given the HERO5 launch. Furthermore, the analyst said cash burn going into 2017 gives him cause for concern, with the shares likely to continue to be under pressure until some sort of revenue and profit stabilization is evident. The action camera category is "clearly mature" to the point that even product refreshes seem unable to drive growth, he contended. While he is encouraged that the Karma drone has started shipping again, McCourt pointed out that he suspects this will be a very small revenue stream for GoPro in the foreseeable future. Meanwhile, Piper Jaffray analyst Erinn Murphy reiterated an Underweight rating on the shares as results "handily" missed sales expectations. Murphy told investors that more concerning was the first quarter's revenue and gross margin guidance coming in "markedly below consensus" and the pulling of November's 2017 outlook. The analyst noted she continues to see 16% downside in the shares.

LONG-IDEA INTO 2017: More bullish on GoPro, JPMorgan analyst Paul Coster told investors he is sticking with it as a long-idea into 2017 following the company's "mixed" fourth quarter results and "weak" first quarter outlook. His Overweight rating, however, is on a "tight rein," the analyst noted. Coster pointed out that the stock can work given broad investor skepticism, assuming the CEO delivers on his commitment to restore profitability, or, if failing to do so, seeks strategic alternatives "while the brand is still hot." The analyst lowered his price target on the shares to $12 from $13.

PRICE ACTION: In morning trading, shares of GoPro have dropped about 12.5% to $9.59.