Garmin stock rating reiterated by KeyBanc, cites business resilience

Investing.com - KeyBanc has reiterated its Sector Weight rating on Garmin Ltd. (NYSE:GRMN), following a recent meeting with the company’s management team. The company, currently trading at a P/E ratio of 29x and showing impressive gross profit margins of 59%, has demonstrated strong market performance with a 40% return over the past year.

The meeting included Garmin CEO Cliff Pemble and Investor Relations representative Teri Seck, according to KeyBanc analyst Noah Zatzkin.

KeyBanc emerged from the discussions "incrementally positive" on the resilience of Garmin’s diversified business model, though no specific price target was mentioned in the analyst’s comments.

The meeting focused on Garmin’s various segments and end markets, with particular attention to continuous innovation in wearables and related subscription opportunities, resilience in the Marine and Aviation segments, and the company’s Auto OEM ramp.

KeyBanc noted appreciation for Garmin’s "uniqueness," highlighting its "extensive track record of premium innovation in niche verticals," with the firm stating that recent results demonstrate the durability of Garmin’s business model.

In other recent news, Garmin announced a collaboration with King’s College London to become the exclusive smartwatch provider for the EMBRACE research program. This initiative aims to collect biometric data from up to 40,000 participants worldwide, focusing on maternal health. Additionally, Garmin introduced several new products, including the Rally 110 and 210 cycling power meters, which feature rechargeable batteries and improved accuracy. These power meters provide up to 90 hours of ride time and include a Travel Mode to conserve battery during transport. Garmin also launched the Edge 550 and 850 cycling computers, which offer advanced training features and improved displays for cyclists. In another product release, Garmin unveiled the fēnix 8 Pro series, its first smartwatches with built-in satellite and cellular connectivity. These smartwatches enable users to send messages and share locations without a smartphone. Lastly, Garmin introduced the GPSMAP H1i Plus, a premium GPS handheld device with enhanced satellite communication capabilities for off-grid photo sharing and emergency SOS messaging.

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