Analyst Joseph Cardoso from J.P. Morgan maintained a Hold rating on Garmin (GRMN – Research Report) and increased the price target to $260.00 from $219.00.
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Joseph Cardoso has given his Hold rating due to a combination of factors that reflect Garmin’s current market position and future outlook. Garmin has demonstrated strong earnings and robust performance across its segments, particularly in Fitness and Outdoor, which have exceeded expectations. The company’s full-year guidance for 2025 aligns with the high end of expectations, showcasing strong product momentum and execution. However, despite these positive indicators, there are headwinds in the Auto OEM segment and uncertainties regarding the future ramp-down and ramp-up in this area.
Cardoso also notes that while there is strong demand and the potential for leverage at the gross and operating margin levels, the full-year margin outlook remains conservative. This conservative outlook, coupled with limited upside potential in a market environment characterized by sluggish consumer spending, supports the Hold rating. Garmin’s shares are already trading at a premium, and while there is potential for upside, it is balanced by the uncertainties and limited visibility in certain segments, prompting a cautious approach.
GRMN’s price has also changed moderately for the past six months – from $175.910 to $241.930, which is a 37.53% increase.