GoPro Inc. (GPRO) shares plummeted 5.24% in pre-market trading on Tuesday, despite a price target upgrade from Morgan Stanley. The sharp decline comes as a surprise given the seemingly positive news, highlighting the complex factors influencing investor sentiment in the action camera maker.

Morgan Stanley analyst Erik Woodring raised the price target for GoPro from $0.30 to $0.50, maintaining a Sell rating on the stock. This adjustment, while an increase, still implies a significant downside from the current trading levels. The analyst's decision to maintain a Sell rating, despite the higher price target, suggests ongoing concerns about GoPro's business prospects.

The stock's negative reaction may be attributed to broader market trends or specific concerns about GoPro's ability to overcome challenges in the consumer electronics sector. Woodring's report likely highlighted revenue challenges amidst weak consumer sentiment and increased competition, factors that could be weighing heavily on investor minds. The contradiction between the higher price target and the maintained Sell rating might have also created confusion in the market, potentially contributing to the sell-off.