Barclays Upgrades Garmin Amid Positive Outlook for Wearables
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 13 2024
0mins
Should l Buy GRMN?
Garmin Ltd. experienced a price drop of 5.00% as it crossed below its 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 1.89% and the S&P 500 down 1.88%.
Despite this decline, Barclays upgraded Garmin from Underweight to Equal Weight, raising the price target from $208 to $217. Analysts expressed optimism about Garmin's diversified business model and strong performance in the wearables sector, which is expected to be less affected by consumer spending contractions. This positive outlook contrasts with the overall market sentiment, indicating potential resilience for Garmin.
The upgrade from Barclays may provide a buffer against the current market pressures, suggesting that Garmin's strategic positioning in the wearables market could lead to recovery in its stock performance.
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Analyst Views on GRMN
Wall Street analysts forecast GRMN stock price to rise
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 237.460
Low
217.00
Averages
259.00
High
310.00
Current: 237.460
Low
217.00
Averages
259.00
High
310.00
About GRMN
Garmin Ltd. (Garmin) is a Switzerland-based entity. The Company and its subsidiaries offer global positioning system (GPS) navigation and wireless devices and applications. The Company operates through five segments: fitness, outdoor, aviation, marine and auto. It offers a range of auto navigation products, as well as a range of products and applications designed for the mobile GPS market. It offers Outdoor Handhelds, Wearable Devices, Golf Devices, and Dog Tracking and Training/Pet Obedience Devices. Garmin offers various products designed for use in fitness and activity tracking. Company’s aviation business segment is a provider of solutions to aircraft manufacturers, existing aircraft owners and operators, as well as military and government customers and serves a range of aircraft, including transport aircraft, business aviation, general aviation, experimental/light sport, helicopters, optionally piloted vehicles, and unmanned aerial vehicles. Company operates worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Segment Performance: Revenue from the Fitness segment surged 42% year-on-year to $765.84 million, primarily driven by robust demand for advanced wearables, reflecting ongoing consumer interest in health technology products.
- Shareholder Return Plans: The Board plans to increase the quarterly dividend per share by 17% to $1.05 and authorized a share repurchase program of up to $500 million from 2026 to 2028, demonstrating confidence in future cash flows and commitment to shareholders.
- Optimistic Outlook: Garmin expects 2026 revenue of $7.9 billion, exceeding the analyst consensus estimate of $7.631 billion, with an adjusted EPS forecast of $9.35, indicating that the company's strategic focus on new product launches will continue to drive growth.
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- Yield Advantage: This dividend adjustment results in a forward yield of 5.31%, providing investors with an attractive income opportunity and further solidifying Garmin's investment appeal in the market.
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See More
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- Significant Revenue Growth: Garmin reported a 17% year-on-year revenue increase to $2.12 billion, surpassing the analyst consensus estimate of $2.02 billion, indicating strong performance and competitiveness in the market.
- Segment Performance: Revenue from the Fitness segment surged 42% year-on-year to $765.84 million, primarily driven by robust demand for advanced wearables, reflecting ongoing consumer interest in health technology products.
- Shareholder Return Plans: The Board plans to increase the quarterly dividend per share by 17% to $1.05 and authorized a share repurchase program of up to $500 million from 2026 to 2028, demonstrating confidence in future cash flows and commitment to shareholders.
- Optimistic Outlook: Garmin expects 2026 revenue of $7.9 billion, exceeding the analyst consensus estimate of $7.631 billion, with an adjusted EPS forecast of $9.35, indicating that the company's strategic focus on new product launches will continue to drive growth.
See More
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- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, although specific upgrades and downgrades are not disclosed, this shift could influence investor decisions and market sentiment.
- Market Reaction Expectations: Changes in analyst ratings typically trigger market volatility, prompting investors to monitor these shifts to assess potential investment opportunities and risks, especially in the current economic climate.
- Investor Focus: For those considering buying CHWY stock, analysts' opinions will serve as a crucial reference point, potentially impacting their buying decisions and the stock's market performance.
- Rating Change Transparency: While the article does not provide specific details on rating changes, it emphasizes the importance of the analyst ratings page, where investors can access comprehensive information on rating changes to make informed investment choices.
See More
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- Dividend Increase: Garmin has announced a monthly dividend increase from $0.90 to $1.05, representing a 16.7% rise, which not only enhances shareholder returns but also reflects the company's robust financial performance and sustained profitability.
- Yield Advantage: This dividend adjustment results in a forward yield of 5.31%, providing investors with an attractive income opportunity and further solidifying Garmin's investment appeal in the market.
- Payment Schedule: The new dividend will be payable on June 26, with a record date of June 15, and additional payment dates set for September, December, and March next year, ensuring shareholders receive consistent returns.
- Future Outlook: Garmin projects a 9% revenue growth to $7.9 billion in 2026, highlighting strong growth potential in the fitness and aviation sectors, which further enhances its long-term investment value.
See More
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- Significant Revenue Growth: Garmin's Q4 revenue reached $2.12 billion, a 17% increase year-over-year, surpassing the market expectation of $2.02 billion, primarily driven by strong performance in fitness products, particularly the newly launched Venu 4 and Bounce 2 smartwatches, which boosted segment revenue by 42% to $765.8 million.
- Earnings Beat Expectations: Adjusted earnings per share came in at $2.79, exceeding analyst expectations of $2.40, demonstrating effective management in cost control and market demand, which further bolstered investor confidence.
- Optimistic 2026 Outlook: Garmin anticipates total revenue of $7.9 billion for 2026, above analysts' expectations of $7.63 billion, with projected earnings per share of $9.35, significantly higher than the consensus forecast of $8.70, reflecting strong confidence in future growth.
- Dividend Increase: The company announced a 17% increase in quarterly dividends to $1.05, showcasing its robust cash flow and commitment to shareholder returns, which further enhances market sentiment towards Garmin's stock.
See More
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- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that boosts market confidence and drives stock prices higher.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the housing market that could stimulate investment and consumption in related sectors.
- Manufacturing Production Growth: January manufacturing production rose by 0.6% month-over-month, stronger than the expected 0.4%, marking the largest increase in 11 months, indicating a recovery in manufacturing that supports overall economic growth expectations.
- Optimistic Stock Market Performance: Over 75% of S&P 500 companies reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, providing strong support for the stock market despite lingering doubts about future interest rate policies.
See More
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- Record Financial Performance: Garmin achieved $2.125 billion in revenue for Q4 2025, marking a 17% year-over-year increase and setting a new fourth-quarter record, showcasing the company's strong product demand and the advantages of its diversified business model.
- Future Growth Expectations: The company anticipates a revenue increase of approximately 9% to $7.9 billion in 2026, with operating income expected to exceed $2 billion for the first time, reflecting management's confidence in sustained market demand and future performance.
- Significant Dividend Increase: Garmin proposed a 17% increase in its annual dividend to $4.20 per share, indicating a commitment to shareholder returns while achieving financial growth, thereby enhancing investor confidence.
- Strategic Communication Shift: Management has decided to no longer emphasize individual segment growth targets, instead focusing on providing consolidated guidance, aiming to navigate market challenges through innovation and supply chain resilience, further solidifying the company's market position.
See More
