Why Is Garmin Stock Falling Today?
Portfolio Pulse from Lekha Gupta
Garmin Ltd. (NYSE:GRMN) shares are trading lower after BofA Securities analyst Ronald J. Epstein downgraded the stock to Underperform from Neutral and cut the price target from $165 to $150. Despite strong first-quarter performance, the analyst is concerned about decelerating momentum and unsustainable valuation. The AutoOEM segment is expected to reach breakeven in 4Q24, but growing Auto revenues may impact margins. Garmin stock has gained 55% in the last 12 months. Investors can gain exposure via Global X Internet Of Things ETF (NASDAQ:SNSR) and Procure Space ETF (NASDAQ:UFO).

May 22, 2024 | 5:40 pm
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NEGATIVE IMPACT
Garmin Ltd. shares are down 4.92% after BofA Securities downgraded the stock to Underperform and cut the price target to $150. Concerns over decelerating momentum and unsustainable valuation are driving the downgrade.
The downgrade from a reputable analyst and the reduction in price target are significant negative signals for investors, leading to a short-term decline in stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Global X Internet Of Things ETF (NASDAQ:SNSR) may see minor impact due to its exposure to Garmin Ltd., which has been downgraded by BofA Securities.
SNSR has exposure to Garmin, and the downgrade of Garmin could have a minor negative impact on the ETF's performance.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30
NEGATIVE IMPACT
Procure Space ETF (NASDAQ:UFO) may experience minor impact due to its exposure to Garmin Ltd., which has been downgraded by BofA Securities.
UFO has exposure to Garmin, and the downgrade of Garmin could have a minor negative impact on the ETF's performance.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30