As an eager pool of media and press, investors, together with analysts all waited to witness GoPro Inc (NASDAQ:GPRO) unveil its newest product cycle, CEO Nick Woodman launched the “much-anticipated” Hero 5 session, the Hero 5 Black, as well as the Karma drone, the company’s first step into the drone market.

On back of product reveal, Piper Jaffray analyst Erinn Murphy reiterates an Underweight rating on shares of GPRO, but raises the price target from $6.50 to $9.00, “given the immediate line of sight of new product introductions.” However, Murphy adds with that being said, share value down the road will ultimately stem from overall TAM, gross margin stabilization, and longer-term growth unit assumptions, of which the analyst remains cautious.

Coupled with the launch, the action camera giant also hosted a question and answer session with the Street. Management maintains guidance of $1.3 to $1.5 billion in annual sales as well as a gross margin for the second half of the year of 40%, asserting once again the belief that the fourth-quarter “could turn a profit.”

The analyst ultimately is bearish on GPRO despite management’s optimism, explaining, “While the $399 HERO 5 Black may drive volume (with added functionality of 4k video, voice control, waterproof, GPS & touchscreen), we are still wary of the long-term margin on this product.” Additionally, Murphy anticipates based on $50 price reductions in both the Hero 4 Silver and the Hero 4 Black, “we believe the company plans to discontinue both.”

“Karma, while the footage it shoots looked compelling, we believe the price-to-battery life relationship is not a favorable as the competition. We are raising our multiple, but keeping our estimates unchanged,” Murphy concludes.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst Erinn Murphy is ranked #4,001 out of 4,166 analysts. Murphy has a 37% success rate and faces a loss of 8.2% in her annual returns. When recommending GPRO, Murphy loses 28.4% in average profits on the stock.

TipRanks analytics exhibit GPRO as a Hold. Based on 13 analysts polled in the last 3 months, 3 rate a Buy on GPRO, 8 maintain a Hold, while 2 issue a Sell. The 12-month average price target stands at $12.40, marking a 19% downside from where the shares last closed.screen-shot-09-20-16-at-01-06-pm