Feb. 19 at 8:17 PM
Morgan Stanley upgraded Garmin to Equal-weight from Underweight, saying its cautious view has largely played out and that 2026 guidance points to stronger growth and more stable margins than previously expected.
The bank set a new
$252 price target, based on 24x its 2027 EPS estimate of
$10.49. It noted the stock trades at about 22x earnings, broadly in line with historical averages and at a modest discount to the S&P 500 given updated growth forecasts.
Garmin expects 9% revenue growth in 2026 to around
$7.9 billion. Morgan Stanley now projects 12% year-over-year revenue growth and 11% EPS growth for 2026—6% and 8% above consensus, respectively. The firm called the guidance conservative, citing historical seasonality, a potentially earlier-than-expected Outdoor product launch, and a track record of beating initial revenue targets.
On margins, Garmin guided for a 58.5% gross margin in 2026, down 20 basis points year over year.
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