In a report released today, Ronald Epstein from Bank of America Securities reiterated a Sell rating on Garmin, with a price target of $185.00.
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Ronald Epstein has given his Sell rating due to a combination of factors impacting Garmin’s future performance. Despite Garmin’s core businesses showing resilience in a challenging macroeconomic environment, there are concerns about the sustainability of this momentum in the latter half of the year. The company’s valuation appears limited in terms of discovery value, given the potential downside risks.
Additionally, while tariff relief from China has been beneficial, uncertainties surrounding Taiwan’s tariffs pose a significant question. Garmin’s inventory levels remain high due to previous demand and tariff avoidance strategies, which could impact free cash flow. Although Garmin’s acquisition of MyLaps could integrate users into its ecosystem, the potential synergies from this deal are uncertain, leading to a neutral stance on the acquisition.