NEW YORK (TheStreet) -- Shares of action camera maker GoPro are falling sharply in an up market. In a note to investors today, Citigroup was pessimistic about the company's near-term outlook in overseas markets, and reported that a new competitor was emerging in the drone camera space. WHAT'S NEW: After meeting with GoPro CFO Jack Lazar at the Consumer Electronics Show in Las Vegas, Citigroup analyst Ehud Gelblum reported that GoPro is looking to transition to a direct distribution model in Europe over time, and sell its cameras to more European retailers. However, Lazar acknowledged that the transition will take time, leading Gelblum to believe that GoPro's growth in overseas markets may "remain muted" this year. Meanwhile, after speaking with DJI, a leading drone maker, the analyst reported that DJI is developing its own 4K cameras and adding them to most of its drones. This development could reduce GoPro's sales, Gelblum stated. PRICE ACTION: In early afternoon trading, GoPro fell 5% to $61.60. Reporting by Larry Ramer.
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