Garmin stock slides 6% after Barclays analysts remarks

Garmin (GRMN.US) drops almost 6% today, as Barclays downgraded the stock to 'Sell' today. The investment bank cut its 12-month price target on the stock to $133 and now expects weak H2 2024 sales and shrinking margins. Company revenues jumped 14% YoY in the Q2 2024, but profits rose 4%. Barclays commented that "underlying consumer hardware spend environment remains muted." Barclays anticipates that Garmin will sell relatively small amount of high-margin aviation products in the second half of this year and lower than in the first half, with more low-margin automotive products, resulting in weaker gross profit margins.

Garmin (GRMN.US, D1 interval)

stock respected the lower side of the upward channel, with doji candlestick, signalling potentially continuing the rising trend. Dropping below $165 may be a signal for eventually trend reversal pattern.

Source: xStation5