Goldman Sachs downgraded GoPro (GPRO) to Sell from Neutral this morning, joining Citi, which began coverage of the stock on Friday, with a recommendation to sell the stock.

CHALLENGES: GoPro’s core action camera market is saturated, while its new drone, Karma, is “disappointing” and inferior to competing offerings, according to Goldman analyst Simona Jankowski. Meanwhile, the company has to cope with a new competitor, YI Technology, that’s selling similar products for $100 less, she stated. Additionally, GoPro’s operating expenditures have risen significantly in the last two years and it has taken a number of restructuring charges, she noted.

CONSEQUENCES: Jankowski estimated that GoPro’s free cash flow would be negative until the fourth quarter of 2017. As a result, the company’s cash reserves could drop meaningfully, and it may have to use its credit facility, she stated. Jankowski lowered her estimates for GoPro below consensus levels and cut her price target on the stock to $6 from $9.50.

CITI ALSO SAYS SELL: On March 3, Citi analyst Stanley Kovler initiated GoPro with a Sell rating. The action camera market is slowing, while GoPro faces tough competition in the drone market from companies that have more experience in that space, as well as more varied offerings, Kovler warned. He set an $8 price target on the stock.

PRICE ACTION: In morning trading, GoPro declined nearly 7% to $8.25. Over the last six months GoPro shares have fallen over 43%.