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Garmin Price Target Raised as Innovation Drives 'Significant' Growth Opportunities

Published 2022-05-06, 04:00 p/m
© Reuters.
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By Sam Boughedda

Investing.com -- Garmin's (NYSE:GRMN) shares fell 2.3% on Friday even after Tigress Financial by analyst Ivan Feinseth raised the price target to $208 from $205. 

The analyst maintained a strong buy rating, telling investors in a note that the company's "resilient business model and ongoing innovation, new product introductions, and strong demand trends continue to drive significant growth opportunities."

"Strong brand equity and its diversified product portfolio will continue to drive long-term growth and overcome near-term margin pressures and supply chain issues, as highlighted by its strong Q1 revenue, a dividend increase, and newly announced share repurchase authorization," wrote Feinseth.

Garmin recently reported its first-quarter results, posting a record revenue of $1.17 billion, driven by strong demand for its adventure watches.

"Q1 results highlight the strength and value of its diversified product portfolio as well as its extremely vertically integrated manufacturing capabilities," the analyst added.

The company's stock is down 22.5% in 2022.

"Our 12-month target price of $208 combined with GRMN’s current dividend yield represents a potential total return of over 95% from current levels," wrote Feinseth.

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