UPDATE: Credit Suisse Initiates Coverage on Garmin Ltd. with Neutral Rating, $54 PT on Mixed Segment Trajectories

In a report published Friday, Credit Suisse analyst Robert Spingarn initiated coverage on

with a Neutral rating and $54.00 price target. In the report, Credit Suisse noted, “Our rating reflects the balance between the solid growth outlook in Aviation and recovery at Marine, with the continued structural decline in PND and a somewhat more cautious view on Fitness and Outdoor, where intensifying competition could become a headwind. We also consider the valuation support offered by $14.63 per share in cash & securities on the balance sheet and a 3.7% div yield, which is the highest both among peers and in our coverage universe, but this appears largely reflected in the current price. Our $54 TP is an equal-weighted blend of our DCF, EV/EBITDA, and historical and current P/E methodologies, suggesting shares are fully valued at current levels.” Garmin Ltd. closed on Thursday at $52.61.