UPDATE: Wells Fargo Initiates Garmin on Outperform on Solid Segment Growth

Wells Fargo initiated its coverage on Garmin

with an Outperform rating as it believes current valuation on shares is understated. Wells Fargo said, "Garmin is showing solid growth in all of its segments except for Auto. The primary driver of the Auto segment is the Portable Navigation Device (PND) business and the PND business is in secular decline. As a result of this secular trend, Garmin's organic revenue growth rate for the mid-term is roughly flat as the 5-10% annual declines in the PND business offset solid growth in the company's other segments. Despite this headwind, we believe GRMN's valuation fully reflects the state of the PND business and doesn't fully reflect the value of GRMN's other businesses and net cash." Garmin closed at $ on Thursday.