Garmin Ltd.

(New York Stock Exchange)
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Slightly Bullish +25

Morgan Stanley Lowers its Price Target on Garmin (GRMN) to $249

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📉 Morgan Stanley lowered its price target on Garmin Ltd. (GRMN) from $252 to $249 while maintaining an Equal Weight rating.

📅 This downgrade occurred on April 30, 2026, shortly after the company released Q1 results.

📈 The analyst noted that Q1 performance was modestly ahead of expectations, with the Fitness segment standing out significantly.

💰 Garmin reported Q1 adjusted earnings per share (EPS) of $2.08 compared to a consensus estimate of $1.84.

💵 Total revenue for the quarter came in at $1.75 billion against an expected $1.71 billion.

🗣️ CEO Cliff Pemble described the results as "remarkable," citing strong demand and a diversified business model.

🔮 The company reaffirmed its full-year 2026 pro forma EPS outlook at $9.35 versus a consensus of $9.39.

💼 Revenue guidance for FY26 stands at approximately $7.9 billion, slightly below the expected $7.98 billion.

🏦 JPMorgan raised its price target to $285 from $265 and maintained a Neutral rating prior to earnings.

🧭 Garmin designs and sells GPS-enabled navigation, communication, and fitness-related products globally.

⚠️ The Morgan Stanley report highlighted that certain AI stocks may offer greater upside potential with less downside risk.

📄 A free report on short-term AI stocks benefiting from tariffs and onshoring trends is referenced in the article.

Bullish Signals
  • Garmin reported Q1 adjusted EPS of $2.08, significantly beating the $1.84 consensus estimate.
  • The company's revenue reached $1.75B, surpassing the $1.71B expected by analysts.
  • Morgan Stanley noted that the Fitness segment continues to stand out as a strong performer.
  • Management highlighted potential upside risk to full-year estimates based on recent modest results.
  • Chief Executive Officer Cliff Pemble described the delivery of "remarkable financial results," citing strong demand across the product lineup.
  • JPMorgan raised its price target for Garmin from $265 to $285, reflecting positive sentiment.
  • Garmin reaffirmed its FY26 pro forma EPS outlook of $9.35 and revenue guidance of about $7.9B, maintaining stability in forward-looking targets.
Risk Factors
  • Morgan Stanley downgraded its price target on Garmin (GRMN) from $252 to $249, signaling reduced enthusiasm despite recent earnings beats.
  • The firm maintained an 'Equal Weight' rating instead of an 'Overweight', suggesting limited upside potential relative to the broader market.
  • Garmin's FY26 pro forma EPS outlook was lowered to $9.35, which falls short of the $9.39 consensus estimate.
  • Revenue guidance of about $7.9B also missed the $7.98B expected target, indicating potential weakness in future growth expectations.
  • Analysts argue that other AI stocks offer greater upside potential while carrying significantly less downside risk than Garmin.
  • Morgan Stanley's commentary implies Garmin may not benefit as much from macroeconomic tailwinds like Trump-era tariffs and onshoring trends compared to pure-play AI equities.
Full Analysis
On April 30, 2026, Morgan Stanley downgraded its price target on Garmin Ltd. (NYSE:GRMN) from $252 to $249 while maintaining an Equal Weight rating, citing Q1 results that were modestly better than expectations with fitness performance remaining a key strength. This update followed the company's earnings report on April 29, 2026, where Garmin posted adjusted earnings per share of $2.08 against a consensus of $1.84 and revenue of $1.75 billion versus the expected $1.71 billion. CEO Cliff Pemble highlighted the financial performance as remarkable driven by strong demand across its diversified product lineup, though the company reaffirmed its full-year 2026 pro forma EPS outlook at $9.35 compared to a consensus estimate of $9.39 and revenue guidance of approximately $7.9 billion against expectations of roughly $7.98 billion. In contrast to Morgan Stanley's adjustment, JPMorgan previously raised its price target on Garmin to $285 from $265 in early April while keeping a Neutral rating as part of a Q1 preview, reflecting differing analyst sentiments regarding the stock's immediate value. The article also frames this coverage within a broader list titled "10 Best European Stocks That Beat Earnings Estimates to Buy," indicating that despite the price target reduction, Morgan Stanley acknowledges Garmin's investment potential amidst mixed market signals about AI opportunities and other macroeconomic factors like tariffs and onshoring trends mentioned in the text.