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Investing.com - BofA Securities has raised its price target on Garmin Ltd . (NYSE:GRMN) to $185.00 from $175.00 while maintaining an Underperform rating on the stock. According to InvestingPro data, Garmin currently trades at $233.45, with a P/E ratio of 28.68, suggesting a premium valuation relative to near-term earnings growth.
The price target increase follows stronger-than-expected performance in Garmin’s Fitness segment, which posted 41% year-over-year growth in the recent quarter, driven by multiple new product launches.
BofA Securities noted that Garmin’s core businesses, including Outdoor and Fitness, have shown resilience despite challenging macroeconomic conditions, with the Fitness segment exceeding both analyst and consensus expectations.
Despite the price target increase, the firm maintained its Underperform rating, citing concerns that the strong momentum observed in the second quarter may not continue through the second half of the year.
The updated price target reflects a market re-rating while maintaining a relative 1.0x multiple to the S&P 500 on 2026 estimates, with BofA Securities keeping its earnings per share estimates unchanged and above consensus, though expressing concern about "limited discovery value" at Garmin’s current valuation given potential downside risks.
In other recent news, Garmin Ltd. reported impressive second-quarter results that surpassed analyst expectations. The company achieved adjusted earnings of $2.17 per share, significantly above the consensus estimate of $1.86 per share. Revenue also reached a record $1.81 billion, exceeding the projected $1.7 billion and reflecting a 20% increase compared to the same period last year. These strong financial results have prompted Garmin to raise its full-year guidance, indicating confidence in continued demand across all business segments. The company’s performance has caught the attention of analysts, with some firms likely to adjust their outlook on Garmin’s stock following these developments. These recent achievements underscore Garmin’s robust position in the market and its ability to exceed financial targets.
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