Seeking Alpha

This weekend's Barron's (sub. req.) reprints an enthusiastic upgrade of GPS/Personal navigation device maker Garmin (ticker: GRMN) from Needham & Co. Excerpts:

We have long been impressed by Garmin's products and its impressive track record of revenue and earnings growth... with the stock having sold off almost 20% from its recent highs and now trading at a reasonable 18x cash-adjusted multiple of our 2006 earnings estimate, we are upgrading the shares...

Garmin is the leader in the rapidly growing PND market. While there are legitimate concerns regarding the margins, there is little doubt in our mind that the PND market is seeing explosive growth and will likely continue to for the next several years. Garmin has stated that it is seeing triple-digit growth in its PND business in 2005 while competitor TomTom is seeing 300%-plus growth in its business. And this market continues to be substantially underpenetrated (with about 5% of cars in U.S. and 8% of cars in the European Union having navigation systems in them).... We are establishing a 12-month price target of $66...

GRMN 1-yr chart:

Source: Needham & Co.: Garmin 'Well Positioned For Growth' (GRMN)