Goldman Sachs Boosts Numbers On Garmin (GRMN) Following Strong Q4 and Conservative Guidance, Keeps Neutral on Valuation
Tweet Send to a FriendGet Alerts GRMN Hot Sheet
Price: $36.88 +1.35%
Rating Summary:
6 Buy, 3 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
6 Buy, 3 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade GRMN Now!
Goldman Sachs raised its price target on Garmin Ltd. (NASDAQ: GRMN) from $38 to $43 after strong fourth quarter results and conservative guidance. However the firm is keeping its Neutral rating due to valuation.
The firm noted the upside was driven by better-than-expected PND units, which the firm estimates came in at 5 million versus their estimate of 3.9 million. Gains were seen in Europe and the decline in the US PND market moderated. Also, Outdoor/Fitness revenues were 15% ahead the firm's estimate and gross/operating margins in that segment were 4 points better. "Both of these sources of upside should assuage the bear case in the stock," the firm notes.
On the 2012 guidance, the firm views it as "conservative" as they estimate Garmin deferred over $140 million in PND operating profits in 2011 but will defer roughly $0 in 2012.
Goldman raised FY12/13 EPS to $2.97/$3.17 from $2.53/$2.73 and introducing FY14 at $3.15.
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 $48.86 yesterday, with a 52 week range of $29.23-$49.93.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The firm noted the upside was driven by better-than-expected PND units, which the firm estimates came in at 5 million versus their estimate of 3.9 million. Gains were seen in Europe and the decline in the US PND market moderated. Also, Outdoor/Fitness revenues were 15% ahead the firm's estimate and gross/operating margins in that segment were 4 points better. "Both of these sources of upside should assuage the bear case in the stock," the firm notes.
On the 2012 guidance, the firm views it as "conservative" as they estimate Garmin deferred over $140 million in PND operating profits in 2011 but will defer roughly $0 in 2012.
Goldman raised FY12/13 EPS to $2.97/$3.17 from $2.53/$2.73 and introducing FY14 at $3.15.
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 $48.86 yesterday, with a 52 week range of $29.23-$49.93.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Says Tesla (TSLA) 'Top Pick in U.S. Autos'
- SunPower (SPWR) Not Worth More than $13/Share, Says Goldman
- Pier 1 Imports (PIR) Sets Sights on Growing Ecommerce
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Goldman Sachs
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
