Bank of America Securities analyst Ronald Epstein reiterated a Sell rating on Garmin today and set a price target of $185.00.
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Ronald Epstein has given his Sell rating due to a combination of factors affecting Garmin’s performance. One of the primary concerns is the slowdown in the Outdoor segment, which is expected to see a year-over-year sales decline of approximately 5% in the fourth quarter. This slowdown is particularly troubling for investors, as it suggests challenges in maintaining growth momentum in this segment. Additionally, the AutoOEM segment has faced profitability issues and is expected to remain unprofitable until production on new contracts begins in 2027.
Despite positive growth in the Fitness, Marine, and Aviation segments, driven by new product releases, there are concerns about whether this growth can be sustained into 2026. Furthermore, while Garmin’s focus on research and development and niche mergers and acquisitions is seen as innovative, some investors worry that the company may be falling behind in emerging categories like smart glasses and jewelry. The elevated inventory levels to mitigate potential tariff impacts also pose a risk to free cash flow, contributing to the cautious outlook on Garmin’s stock.
In another report released on October 30, Barclays also maintained a Sell rating on the stock with a $208.00 price target.