Garmin initiated with Sector Weight on challenging 2023 at KeyBanc

KeyBanc analyst Noah Zatzkin initiated coverage of Garmin with a Sector Weight rating and no price target. The company has executed long-term, pioneering new devices and delivering leading share and strong cash flow, the analyst tells investors in a research note. However, the shares trade at a "rich valuation" while Garmin faces a more challenging 2023 and beyond given the macro environment, inventory rebalancing in fitness, and wearables competition.