inspirator schreef op 27 oktober 2014 19:16:
company is well positioned for sustained growth in the future
Dit geldt nog meer voor TomTom als voor Garmin
NEW YORK (TheStreet) -- Shares of Garmin Ltd. (GRMN) are climbing, higher by 0.8% to $55.70 in early market trading Monday, after the provider of navigation, communication and information devices was upgraded to "buy" from "neutral" by analysts at Goldman Sachs this morning.
Analysts at Goldman Sachs also raised its price target to $64 from $61, and said the company is well positioned for sustained growth in the future.
The investment bank also cited Garmin's strength in the outdoor and fitness unit, as well as its auto and mobile segment for raising its rating and price target.
Switzerland-based Garmin is a designer and manufacturer of GPS technology enabled navigation systems.
Separately, TheStreet Ratings team rates GARMIN LTD as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GARMIN LTD (GRMN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
?The revenue growth came in higher than the industry average of 6.6%. Since the same quarter one year prior, revenues rose by 11.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
?GRMN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GRMN has a quick ratio of 1.95, which demonstrates the ability of the company to cover short-term liquidity needs.
?The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Durables industry and the overall market, GARMIN LTD's return on equity exceeds that of both the industry average and the S&P 500.
?The gross profit margin for GARMIN LTD is rather high; currently it is at 58.69%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.39% significantly outperformed against the industry average.
?The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.