Garmin (GRMN): Assessing Valuation After New Launches Expand Aviation and Marine Tech Offerings

Garmin (GRMN) has been making headlines with two new product launches: the D2 Air X15 and D2 Mach 2 aviator smartwatches for pilots, and the Garmin OnBoard wireless safety solution for boaters. These products reflect Garmin's continued push into specialized aviation and marine technology.

See our latest analysis for Garmin.

Investor interest in Garmin has climbed in step with these launches, and there is real momentum behind it. The latest share price sits at $247.55, reflecting a 21% year-to-date share price return and an impressive 55.6% total shareholder return over the past year. The story here is continued strength, both in the short run and over the longer term, as the company’s tech-focused growth narrative gains traction.

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But with shares near record highs and recent product momentum fueling optimism, the key question is whether Garmin’s strong future is already reflected in its stock price or if there is still potential for investors to benefit from further gains.

Most Popular Narrative: 13.4% Overvalued

Compared to Garmin’s last close of $247.55, the most closely followed narrative sets a fair value at $218.33. This suggests the stock price has run ahead of what consensus expects based on the company’s underlying fundamentals.

The launch of the Garmin Connect+ premium service, which offers AI-based health and fitness insights, is likely to boost subscription-based revenue growth and improve overall margins through higher-margin services. The new vívoactive 6 smartwatch release, with advanced features like an AMOLED display and enhanced sports apps, suggests potential revenue growth in the Fitness segment, supported by strong demand for advanced wearables.

Read the complete narrative.

Unlock the real story behind this eye-catching fair value. The narrative hinges on aggressive revenue and margin forecasts, incorporating ambitious growth for Garmin’s premium services and wearables. Want to know the assumptions fueling this projection? Explore the full narrative for insights on how future profit multiples could shape the stock’s valuation.

Result: Fair Value of $218.33 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent global trade tensions or unexpected slowdowns in marine and outdoor demand could challenge Garmin’s upbeat growth assumptions in the coming months.

Find out about the key risks to this Garmin narrative.

Build Your Own Garmin Narrative

If you have your own perspective or enjoy digging into the numbers firsthand, it takes less than three minutes to craft your own view and Do it your way.

A great starting point for your Garmin research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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