Garmin Ltd. App Downloads Show Growth Despite Recent Decline - JPMorgan Analysis
JPMorgan has maintained a Neutral stance on Garmin Ltd. (NYSE:), with a price target of $185.00. The evaluation is based on Garmin Connect's performance, which saw a slight month-over-month decline in downloads for September but continued a trend of year-over-year growth.
Garmin Connect experienced a 4.2% decrease in downloads in September compared to August, which is less than the historical average drop for this period. However, there was a 13.2% year-over-year increase in downloads for September, marking nine consecutive months of growth.
Quarterly, Garmin Connect downloads increased by 2.8% in the third quarter of 2024, surpassing the historical average increase. This trend supports revenue forecasts for Garmin's Fitness and Outdoor segments, with projections showing an increase year-over-year.
Investors should be cautious of potential fading momentum in the face of recent product launches and a sluggish macroeconomic backdrop. Garmin's shares are trading at approximately 27 times the next twelve months' projected earnings.
Recent analyst evaluations vary, with Morgan Stanley downgrading Garmin's stock and Tigress Financial Partners maintaining a Strong Buy rating. Garmin reported a 14% increase in consolidated revenue for the second quarter of 2024.
Overall, Garmin's performance aligns with key metrics and insights from InvestingPro. The company's revenue growth supports continued year-over-year growth, and its strong financial position and shareholder-friendly policies indicate a solid foundation.
In conclusion, Garmin's app downloads may have seen a recent decline, but the overall trend shows growth. Investors should consider the company's financial health and market position before making any investment decisions.