Garmin Ltd Surpasses Analyst Target: What Should Investors Consider Next?
In recent trading, shares of Garmin Ltd (Symbol: GRMN) have climbed above the average analyst 12-month target price of $164.40, currently trading at $166.29 per share. When a stock reaches an analyst’s target price, the analyst typically has two options: downgrade the stock due to valuation concerns, or adjust their target price higher. The decision often hinges on the underlying business performance that could be driving the stock price upward — if the company’s outlook is improving, raising the target price may be warranted.
Garmin Ltd is tracked by five analysts within the Zacks coverage universe. However, the average is merely a compilation of their estimates. Some analysts set lower targets, such as one forecasting a price of $133.00, while another has set a higher target of $215.00. The standard deviation among these targets is $34.724.
Analyzing the average target price allows investors to leverage the “wisdom of crowds,” which accounts for the input from multiple analysts rather than relying on a single expert. With GRMN now above the average target of $164.40 per share, investors might consider whether this is merely a stepping stone toward a higher target or if the valuation has become too stretched, prompting a possible exit strategy. Below is a table displaying the current thoughts of analysts covering Garmin Ltd:
| Recent GRMN Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 1 | 1 | 1 | 1 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 2 | 3 | 4 | 4 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 2 | 1 | 0 | 0 |
| Average rating: | 3.38 | 3.17 | 2.83 | 2.83 |
The average rating shown in the last row ranges from 1 to 5, with 1 representing a Strong Buy and 5 indicating a Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com. Access the latest Zacks research report on GRMN — for free.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
