More from Dividend.com
Referenced Stocks

Goldman Sachs Downgrades Garmin Ltd. to “Sell” (GRMN)

By Dividend.com,  November 12, 2012, 08:43:54 AM EDT

On Monday analysts at Goldman Sachs downgraded Garmin Ltd. ( GRMN ) amid weak sales in the personal navigation device market.

The analysts downgraded GRMN from "Neutral" to "Sell" and it dropped the price target from $39 to $34. That new price target is a -8.1% drop from Friday's closing price of $37.01.

"Our FY13 EPS estimate is 10% below consensus on weaker sales in personal navigation devices (PNDs) and Fitness as a result of increased smartphone cannibalization and competition," Goldman Sachs commented. "We expect PND trends to weaken as a result of stronger smartphone growth in 4Q and into 2013. In Fitness, we see increased competition pressuring market share and margins. Importantly, we view Garmin more as a relative underperformer, as its 4.9% dividend yield and $13.86 in cash per share (38% of the market cap) lend support to the stock."

GRMN stock was flat in premarket trading on Monday. Garmin shares have depreciated $2.80, or -7.03%, year to date, falling substantially since May.

The Bottom Line
Shares of Garmin Ltd. ( GRMN ) have a 4.86% dividend yield, based on Friday's closing stock price of $37.01. The stock has technical support in the $32-$35 price area. If the shares can firm up, we see overhead resistance around the $40-$42 price levels.

Garmin Ltd. ( GRMN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: GRMN



Latest News Video



Sign-in
Existing NASDAQ.com member? Log in here.

By signing into to the site using any of the third-party services above, you agree to NASDAQ.com's Terms of Use.

From Our Trusted News Source





Most Active by Volume:

Company Last Sale Change Net / %
BAC $ 13.24 0.03  0.23%
FB $ 24.32 0.74  2.95%
SIRI $ 3.58 0.04  0.99%
GE $ 23.53 0.13  0.55%
PFE $ 29.04 0.07  0.24%
MSFT $ 34.27 0.12  0.35%
INTC $ 23.93 0.12  0.50%
P $ 16.43 0.73  4.25%