Garmin (GRMN) Skepticism Not a Sure Thing, Oppenheimer Maintains Perform

December 4, 2012 1:12 PM EST
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It is no secret Garmin (NASDAQ: GRMN) is facing skepticism as smartphones lead to declining use of personal navigation devices, but anyone expecting a material decline in Garmin's overall performance metrics over the next 6-12 months is likely to be disappointed, said analysts at Oppenheimer.

"Garmin has enough things going right across its businesses and faces conservative enough Street estimates to beat 4Q12 expectations and guide up for 2013, in our view," stated Yair Reiner.

Garmin believes it can outperform the market by continuing to win share in Europe and in L. America, and where there is under-penetration in PND.

"We think the iPhone5's integration of turn-by-turn is a bigger game-changer than Garmin recognizes," said Reiner, "but the incremental impact will likely be gradual, as it was after Google's launch of turn-by-turn in 2009. We also believe another 2%-5% increase in Garmin's global share is doable in 2013 and could provide a meaningful offset."

Oppenheimer has a Perform rating on Garmin Ltd. (NASDAQ: GRMN).

For an analyst ratings summary and ratings history on Garmin Ltd. click here. For more ratings news on Garmin Ltd. click here.

Shares of Garmin Ltd. closed at $39.88 yesterday.

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