From Earlier: D.A. Davidson Raises Garmin PT to $55, Maintains Neutral
D.A. Davidson maintained its Garmin (NASDAQ: GRMN) Neutral rating and $55 price target in a research report published today after the company's earnings release.
In the report, D.A. Davidson stated, "We note that net deferred revenue was added $723,000 to revenue but had no impact to EPS this quarter. This is the first time it has been positive since at least the Q4 of 2009. Currently we estimate that there is ~$1.60 per share in deferred net income hung up on the company's balance sheet. As Garmin recognizes this revenue and income over time, it should provide a boost (or at least stem the decline) in margins as these deferred sales carry operating margins of close to 80%."
Shares of Garmin closed today at $49.33, up 3.87% from Tuesday's market close.
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