Research Alert: CFRA Downgrades Opinion On Shares Of Garmin Ltd. To Sell From Hold

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Research Alert: CFRA Downgrades Opinion On Shares Of Garmin Ltd. To Sell From Hold

, MT Newswires - 5:15 PM ET 4/14/2025 default

05:15 PM EDT, 04/14/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $178 from $255, shifting to a P/E of 22x our 2026 EPS view of $8.09, in line with its three-year historical average. We keep our 2025 EPS view at $7.83 and cut 2026's to $8.09 from $8.49. Our downgrade reflects concerns about Garmin's ( GRMN ) growth sustainability as the wearables market slows to 3.9% in 2025. Despite impressive Q4 results, with revenue of $1.82B (+23% Y/Y), we see headwinds from manufacturing concentration (90% in Taiwan) creating significant geopolitical risk. Recent Trump administration tariffs could pressure margins despite current exemptions. While the Fitness (+31%) and Outdoor (+29%) segments showed strong Q4 growth, we expect moderation as competition intensifies. Persistent losses in Auto OEM and weakening conditions in China further support our cautious view. Garmin's ( GRMN ) $2.5B cash position provides flexibility, but we believe current valuation already prices in these strengths, while undervaluing potential risks.

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