UPDATE: Goldman Sachs Downgrades Garmin to Sell on Weak Trends

Goldman Sachs reduced its rating on Garmin

from Neutral to Sell and lowered its price target from $39 to $34. Goldman Sachs noted, "We downgrade Garmin to Sell from Neutral, with 8% downside to our new $34 price target. Our FY13 EPS estimate is 10% below consensus on weaker sales in personal navigation devices (PNDs) and Fitness as a result of increased smartphone cannibalization and competition. We expect PND trends to weaken as a result of stronger smartphone growth in 4Q and into 2013. In Fitness, we see increased competition pressuring market share and margins. Importantly, we view Garmin more as a relative underperformer, as its 4.9% dividend yield and $13.86 in cash per share (38% of the market cap) lend support to the stock." Garmin closed at $37.01 on Friday.