Market Overview

Analyst: Apple Watch May Not Be A Threat To Garmin After All

Share:
Analyst: Apple Watch May Not Be A Threat To Garmin After All
Related GRMN
Fitbit's Demand Issues Will Take Time To Correct, Needs New Products And Partnerships
14 Stocks That Rallied Four Days, Then Sold Off Yesterday
Is Apple Now The Wearables Leader? (Seeking Alpha)
Related AAPL
Gene Munster Leaving Piper Jaffray To Launch VC Firm
How Israel Made Startups A National Priority
Here's How A Dedicated Cord-Cutter Views AT&T's New 'DirecTV Now' Service (Seeking Alpha)

Garmin Ltd. (NASDAQ: GRMN) shares are getting hurt by the pending launch of the Apple Watch, but an analyst said a little more pessimism on the stock could make it attractive.

Switzerland-based Garmin, which makes navigation and information devices for both consumer and transportation markets, has seen its shares fall nearly 12 percent in the year to date. The company closed Friday at $46.66, up $0.07.

Pacific Crest's Brad Erickson reiterated a Neutral rating on Garmin and said specialty retailers have told him that Garmin's running watch sales will take a hit from the pending launch of Apple Inc. (NASDAQ: AAPL)'s competing device.

Related Link: Weekly Tech Highlights: Apple's TV Service Is In Danger, Zynga Fired Its CEO And More

But despite the jawboning, Erickson said those same retailers' sales numbers show no sign of a slowdown approaching Apple's release date.

"Garmin may be better insulated versus Apple than many people realize," Erickson said.

Also weighing on Garmin: Fitbit Inc.'s potential initial public offering. San Francisco-based Fitbit makes wearable gadgets that measure walking, sleeping and other "personal metrics."

Erickson called Garmin shares "fairly valued" and trimmed his price target slightly to $3.08 a share, citing foreign exchange pressure.

Should the shares drop lower, "at some point an investor could do a lot worse," Erickson said, citing Garmin's stable earnings, healthy yield and free cash flow.

 

 

Latest Ratings for GRMN

DateFirmActionFromTo
Aug 2016Morgan StanleyMaintainsEqual-Weight
Aug 2016Goldman SachsDowngradesNeutralSell
Aug 2016Raymond JamesDowngradesOutperformMarket Perform

View More Analyst Ratings for GRMN
View the Latest Analyst Ratings

Posted-In: Apple Brad Erickson GarminAnalyst Color Price Target Reiteration Analyst Ratings Tech Best of Benzinga

 

Related Articles (AAPL + GRMN)

View Comments and Join the Discussion!