- Pac Crest's Brad Erickson has cut Garmin (GRMN -5.9%) to Underperform, He notes an expected fall iWatch launch serves as a competitive threat, and thinks shares are worth "something in the mid-$40s," assuming a valuation of 10x-12x forward enterprise value/EPS.
- Garmin's fitness sales rose 38% Y/Y in Q1, and made up 17% of revenue. Strong demand for the company's Forerunner GPS watches and Vivofit fitness bands fueled the growth.
- While Apple reportedly preps an iWatch, various Android OEMs have either entered the smartwatch market, or plan to do so. Microsoft is also expected to join the fray.