(BofA) – Garmin shares rise after the (BofA) raised its price goal from $104 to $120
- Garmin reported that whole income has elevated by 18% Y/Y to $1.1B in Q3
- The Bank of America raised its price goal from $104 to $120
- As lengthy the price is above $100 assist, there isn’t a danger of the bear market
Garmin (NASDAQ: GRMN) shares have superior from $95 above $123 because the starting of October, and the present price stands round $118. The COVID-19 pandemic has positively impacted Garmin merchandise’ gross sales, and the Bank of America raised its price goal from $104 to $120 for Garmin stock.
Basic evaluation: The COVID-19 pandemic has positively impacted gross sales of Garmin merchandise
Garmin is an American multinational know-how firm specializing in GPS know-how for automotive, aviation, marine, out of doors, and sports activities actions. The corporate additionally produces exercise trackers and smartwatches, which turns into a necessary a part of its product portfolio.
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Garmin shares stay in a purchase zone after the Bank of America raised its price goal from $104 to $120 because the COVID-19 pandemic has positively impacted Garmin merchandise’ gross sales. Garmin reported that internet gross sales of outside, health, and marine merchandise in Q3 had elevated by 30%, 35%, and 54%.
“We now have at all times seen GRMN as a disruptive area of interest participant with a diversified enterprise model and sound steadiness sheet (the corporate has $Zero debt). Nevertheless, the COVID-19 pandemic has positively impacted gross sales of outside, health, and marine merchandise at GRMN greater than we anticipated”, stated analyst Ronald Epstein from Bank of America.
It is very important say that whole income has elevated by 18% Y/Y to $1.1B in Q3 whereas Q3 GAAP EPS was $1.58 (beats by $0.58). Garmin expects to realize wholesome income and earnings progress in This fall, which is traditionally a powerful seasonal interval.
The corporate declared a $0.61/share quarterly dividend, and the ex-dividend day is on December 14. Bank of America raised its 2020 EPS forecast for Garmin from $4.30 to $5.10 and the 2021 EPS forecast from $4.65 to $5.30.
Garmin elevated its income in 2019 to $3.75B from $3.34 in 2018, and the corporate expects $4B in income for the 2020 yr. Technically wanting, Garmin shares may attain the $120 price goal once more this December, however with a $22.7B market capitalization, this stock is pricey, in my view.
Technical evaluation: Garmin shares are buying and selling close to document ranges
Garmin shares are buying and selling close to document ranges, and as lengthy the price is above $100, this stock stays within the bull market.
The important assist ranges are $110 and $100, $ 120, $125, and $130 characterize the resistance ranges. If the price jumps above $120 resistance, it could be a sign to purchase Garmin shares, and the subsequent goal may very well be round $125.
On the opposite facet, if the price falls beneath $100, it could be a agency “sell” sign and possibly a development reversal signal.
Abstract
Garmin shares have superior after the corporate reported higher than anticipated Q3 outcomes; whole income has elevated by 18% Y/Y to $1.1B whereas Q3 GAAP EPS was $1.58. Garmin expects to realize wholesome income and earnings progress in This fall, which is traditionally a powerful seasonal interval. With a $22.7B market capitalization, this stock is pricey in my view, however as lengthy the price is above $100 assist, there isn’t a danger of the bear market.
