Update shared on20 Sep 2025
Fair value Increased 0.55%Garmin's consensus price target was raised slightly to $215.00 as analysts cited strong execution, resilient demand in core segments, and improving gross margins, partially offset by ongoing caution about earnings sustainability.
Analyst Commentary
- Recognition of Garmin's strong execution and continuous innovation driving incremental price target increases, despite overall cautious outlooks.
- Resilient demand in core outdoor and fitness segments demonstrated outperformance in Q2, supporting recent price target raises.
- Improving gross margins, particularly evident in the latest quarterly results, contributed positively to analysts’ short-term forecasts.
- Upward revisions to fiscal 2025 sales guidance reflect stronger-than-expected performance, though optimism is moderated by cautious earnings outlooks.
- Bearish analysts express concerns regarding sustainability of current business momentum and anticipate potential weakness in the second half of 2025.
What's in the News
- Garmin announced a strategic collaboration with Meta to integrate personalized training insights and alerts into Oakley Meta Vanguard AI glasses, leveraging Garmin smartwatches and cycling computers for real-time stats and activity summaries, initially launching in the US.
- Multiple new products launched: Venu 4 smartwatch with advanced health and accessibility features; Instinct Crossover AMOLED hybrid watch with rugged, adventure-ready design; Bounce 2 kids’ smartwatch with LTE, two-way calling, and tracking; Edge 550 and 850 cycling computers; Rally 110/210 power meter pedals; GPSMAP H1i Plus advanced handheld GPS; fenix 8 Pro series smartwatches featuring satellite and cellular connectivity; Blaze equine wellness system; quatix 8 nautical smartwatch; Tacx Alpine gradient simulator for indoor cycling.
- Significant research partnership with King's College London: Garmin becomes exclusive smartwatch provider for the EMBRACE program, supporting up to 40,000 adult participants in AI-driven maternal and baby health research using biometric data from Garmin devices.
- Avionics advancements: FAA certification of Garmin Autoland and Autothrottle for select King Air aircraft, G700 TXi avionics chosen by XTI Aerospace for TriFan 600 xVTOL aircraft, and expansion of FAA Data Comm solution to more aircraft models.
- Garmin completed a $156.8 million share buyback and raised its 2025 revenue guidance to approximately $7.1 billion.
Valuation Changes
Summary of Valuation Changes for Garmin
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $213.83 to $215.00.
- The Consensus Revenue Growth forecasts for Garmin has risen slightly from 7.9% per annum to 8.2% per annum.
- The Net Profit Margin for Garmin remained effectively unchanged, moving only marginally from 21.53% to 21.39%.
Disclaimer
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