Garmin upgraded to "neutral" - update

10/09/07 - American Technology Research

NEW YORK, October 9 (newratings.com) - Analysts at American Technology Research upgrade Garmin Ltd (GRMN) from "sell" to "neutral," while raising their estimates for the company.

In a research note published yesterday, the analysts mention that the upgrade in rating follows the recent decline in the company’s share price. Garmin’s annual capacity is expected to expand to about 24 million units annually, following the set up of manufacturing equipment at the Jhongli facility in Taiwan, American Technology Research says. Potential substitutes to PNDs are unlikely to impact Garmin until end-2008, the analysts add. The EPS estimates for 2007 and 2008 have been raised from $3.63 to $3.70 and from $4.12 to $4.65, respectively.