Dougherty & Co. Upgrades Garmin Ltd. to "Buy" (GRMN)

Dougherty & Co. Upgrades Garmin Ltd. to “Buy” (GRMN)


Early on Thursday, analysts at Dougherty & Co. upgraded GPS manufacturer Garmin Ltd. (GRMN), as they believe the company’s entry into the wearable action camera market will propel it to future growth.

The analysts upgraded GRMN from “Neutral” to “Buy” and see shares reaching $50. This price target suggests a 24% upside to the stock’s Wednesday closing price of $40.28.

“Based on everything we’ve seen thus far, the Virb looks to be very competitive with the GoPro, the current market leader in wearable action cameras. Thus, it is reasonable to assume that Garmin can quickly move into a No. 2 position in the wearable camera market during Q413,” said Dougherty & Co. analyst Charlie Anderson.

“With this new product ramp in play, we now believe investors will be willing to pay 15x non‐Auto earnings (FY15E: $2.37) plus cash ($14/sh),” Anderson added.

Garmin shares were up 42 cents, or 1.04%, during morning trading on Thursday. The stock is about flat year-to-date.

The Bottom Line
Shares of Garmin (GRMN) offer a dividend yield of 4.42% based on Thursday’s intraday trading price of $40.74 and the company’s annualized dividend payout of $1.80 per share.

Garmin Ltd. (GRMN) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

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