Shares of action camera company GoPro Inc (NASDAQ:GPRO) dropped over 5% in trading on September 2 after Ambarella Inc (NASDAQ:AMBA), the semiconductor company who provides the processors in GoPro cameras, posted a lackluster third quarter forecast after announcing its second quarter earnings results on September 1. Additionally, GoPro fell 25% in August amid the broader market’s sell-off.

GoPro prides itself on the high quality of its processors, which enables its cameras to capture high-definition videos and pictures. However, concerns about GoPro’s plans to launch a new product in the third quarter came to light when Ambarella posted a weak Q3 revenue forecast between $90 million and $93 million, while the analyst consensus is $92.33 million. Ambarella attributed its lackluster Q3 guidance to the fact that it launched several new products in the second quarter, which are usually launched in the third quarter.

On the other hand, rumors started circulating in the beginning of August before the broader market sell-off that GoPro could launch another new action camera this year after the company filed paperwork with the FCC for the approval of a new sports action camera.

Raymond James analyst Tavis McCourt reiterated an Outperform rating on GoPro on September 2 despite concerns that the company would not launch a new product this year following Ambarella’s Q3 guidance, though he cut his price target from $71 to $50. The analyst noted, “[Ambarella] management indicated that it expects its chip shipments related to the ‘wearables’ end market, which we believe is mostly GoPro, would be down [year-over-year] and sequentially in October due to the lack of any major product launches in the category.”

Furthermore, “unless GoPro has a product launching with a different image processing vendor, which would be a first for the company, it is looking more likely that the GoPro Hero4 Session was the company’s biggest product launch of the year.”

On average, Tavis McCourt has a 64% success rate recommending stocks and a +13.9% average return per recommendation when measured over a one-year horizon and no benchmark.

Similarly on September 2, Robert W. Baird analyst William Power reiterated an Outperform rating on GoPro, noting, “Although we had previously assumed that GPRO would announce new products this fall, this now appears questionable. However, we view this primarily as a timing issue, and remain positive on the longer-term growth story.”

Overall, William Power has a 55% success rate recommending stocks and a +10.6% average return per recommendation when measured over a one-year horizon and no benchmark.

Out of 17 analysts polled by TipRanks who have rated GoPro within the past three months, 13 are bullish on the stock and 4 are neutral. The average 12-month price target on the action camera company is $79.77, marking a 93.24% potential upside from where shares last closed.