New Apple (AAPL) Map Feature Could Put a Nail in Garmin's (GRMN) Coffin

June 11, 2012 8:33 AM EDT
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Apple (Nasdaq: AAPL) is widely expected to debut a map feature at today's WWDC which could come with turn-by-turn navigation. Analysts at Oppenheimer said this is a negative for Garmin Ltd. (NASDAQ: GRMN) as it could "re-ignite worries about the slope of decline in PNDs."

In addition to the Apple worries, firm said that while Garmin is executing exceptionally well, macro weakness in Europe has hurt demand in the Auto, Marine, and Aviation segments.

Specifically on a potential Apple "bomb shell" at today's WWDC, the firm comments: "It's unclear whether a mapping app update will indeed be announced at the WWDC, or what the update might feature. But it's fairly clear that adding PND-like, turn-by-turn navigation must be high on Apple's wish list. Recall that Google added turn-by-turn capabilities to its Android mapping app in late 2009, but the company has refused to extend that functionality to the iPhone Google map app."

The firm cut FY12 estimates to $2.75B in revenue and $2.69 in EPS from their prior estimates of $2.81B and $2.85. FY13 estimates are reduced to $2.84B in revenue and $2.98 in EPS from $2.93B and $3.07. The firm reiterated their Perform rating on the stock.

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 $41.77 yesterday.

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