Bank of America Securities analyst Ronald Epstein reiterated a Sell rating on Garmin (GRMN – Research Report) today and set a price target of $175.00.
Ronald Epstein has given his Sell rating due to a combination of factors impacting Garmin’s future performance. Despite Garmin being a well-managed company operating in niche markets, Epstein believes the stock’s current valuation is overly optimistic compared to its realistic growth potential. The macroeconomic environment is expected to slow sales in the first half of 2025, which could limit new buyers as consumer spending tightens.
Additionally, Garmin’s AutoOEM segment is facing challenges, with reduced revenue forecasts due to decreased consumer demand and BMW’s lowered production outlook. The potential for further downside is exacerbated by tariff risks, particularly a 32% tariff on imports from Taiwan, which could affect Garmin’s pricing strategy. These factors contribute to Epstein’s decision to maintain an Underperform rating and lower the price objective to $175.
Epstein covers the Industrials sector, focusing on stocks such as Boeing, Rocket Lab USA, and Embraer SA. According to TipRanks, Epstein has an average return of 12.5% and a 62.02% success rate on recommended stocks.