Here's Why Goldman Sachs Doesn't Like Garmin Anymore (Hint: It Has To Do With Fitness)

In a report published Wednesday, Goldman Sachs analyst Simona Jankowski downgraded shares of

to Neutral from Buy with a price target slashed to $54 from a previous $63 as key catalysts that drove the stock higher have now passed. According to Jankowski, Garmin's fourth quarter Fitness revenue was 17 percent above consensus estimates while fiscal 2015 Fitness revenues were guided higher by 25 percent year-over-year. However, the analyst noted that was overshadowed by foreign exchange headwinds, given the fact that 47 percent of total revenues are exposed to foreign currencies. Jankwoski said that retail checks point towards "weakening momentum" in the Fitness segment in the first quarter. In addition, Garmin now has only one out of the top 10 most popular fitness bands on Amazon.com while Fitbit has six. The analyst suggested that software syncing issues have "dampened" follow-through demand after the strong holiday promotion season. Bottom line, shares of Garmin have been under pressure from concerns stemming from its Fitness category, coupled with foreign exchange headwinds, increased competition (that will become more difficult with the introduction of the

Watch) imply limited upside.