UPDATE: Goldman Sachs Upgrades Garmin Ltd. to Neutral, Raises PT Following VIRB/VIRB Elite Launch

In a report published Wednesday, Goldman Sachs analyst Simona Jankowski upgraded the rating on

from Sell to Neutral, and raised the price target from $34.00 to $39.00. In the report, Goldman Sachs noted, “We upgrade Garmin to Neutral from Sell following its launch of the VIRB and VIRB Elite action camera products on August 20. We view the $1bn+ action camera market as an attractive adjacency for Garmin, as it is characterized by high growth, solid margins, and fragmented competition. In addition, Garmin can leverage its strong brand in the athlete market and existing distribution channel to gain share. We raise our FY13/14/15 adjusted EPS estimates to $2.40/$2.40/$2.53 from $2.38/$2.29/$2.35 on action camera sales. Since being added to the Sell list on November 11, 2012, GRMN is up 4% vs. the S&P 500 up 20%. Over the last 12 months, GRMN is down 8% vs. the S&P up 17%.” Garmin Ltd. closed on Tuesday at $38.45.