UPDATE: Bank of America Downgrades Garmin Ltd. to Neutral, Raises PT as Stock Approaches Fair Value

In a report published Thursday, Bank of America analyst Ronald J. Epstein downgraded the rating on Garmin Ltd. GRMN from Buy to Neutral, but raised the price target from $46.00 to $51.00. In the report, Bank of America noted, “We are downgrading Garmin GRMN to Neutral from Buy. In our view, the stock is approaching fair value and there are limited short-term positive catalysts for the stock. However, we are increasing our price objective to $51 from $46, as we factor in a higher multiple from the weighted average of Garmin's peers from different end markets. We derive our PO using a 19x one-year forward P/E multiple. At current levels, there is only a 6% implied upside to our price objective. Thus, we are changing our rating to Neutral.” Garmin Ltd. closed on Wednesday at $47.95.