NEW YORK (TheStreet) -- Shares of Garmin are getting a lift, higher by 2.18% to $54.17 in early market trading on Monday, after analysts at RBC Capital raised its rating on the navigation device maker to "outperform" from "sector perform" this morning. The firm also upped its price target to $67 from $65 on shares, citing valuation. RBC analysts said the company has a relatively high currency risk. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Switzerland-based Garmin provides navigation, communication and information devices and applications, which are enabled by global positioning system technology. Separately, TheStreet Ratings team rates GARMIN LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate GARMIN LTD (GRMN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 9.6%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. GRMN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GRMN has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs. The gross profit margin for GARMIN LTD is rather high; currently it is at 58.10%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -20.78% is in-line with the industry average. Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels. GARMIN LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GARMIN LTD increased its bottom line by earning $3.12 versus $2.77 in the prior year. For the next year, the market is expecting a contraction of 0.3% in earnings ($3.11 versus $3.12). You can view the full analysis from the report here: GRMN Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Click to view a price quote on GRMN. Click to research the Electronics industry.
from Latest TSC Headlines http://ift.tt/1JOtHIj
No comments:
Post a Comment