Garmin Faces Downside Risks Amid Macroeconomic Challenges and Tariff Uncertainties

Ronald Epstein, an analyst from Bank of America Securities, reiterated the Sell rating on Garmin (GRMN – Research Report). The associated price target remains the same with $175.00.

Ronald Epstein has given his Sell rating due to a combination of factors impacting Garmin’s financial outlook. Despite showing resilience in its core Outdoor and Fitness segments with double-digit revenue growth and margin improvements, there are concerns about a potential slowdown in the latter half of the year due to macroeconomic challenges and reduced consumer spending. This has led to a slight reduction in the earnings per share estimates for 2025 and 2026, although they remain above consensus.
Additionally, the uncertainty surrounding tariffs on imports from China and Taiwan poses a risk to Garmin’s cost structure, despite a temporary reprieve from Chinese tariffs. The company’s stock has underperformed the market year-to-date, and with macroeconomic uncertainties persisting, there is further downside risk at its current valuation. The AutoOEM segment also faces challenges, with constrained demand from BMW and potential delays in reaching its breakeven point. These factors collectively support the Underperform rating and a price objective of $175.

According to TipRanks, Epstein is a 5-star analyst with an average return of 14.8% and a 64.36% success rate. Epstein covers the Industrials sector, focusing on stocks such as Boeing, Rocket Lab USA, and General Dynamics.