Bank of America Reiterates Underperform on Garmin

Bank of America reiterated its Underperform rating on Garmin GRMN. In a research report published today, Bank of America named Garmin as a strong low-end player. In the report, Bank of America states, "We view Garmin as a classic example of a low end disruptor in avionics; first, in the general aviation market and now, in the business jet market. Garmin gained a foothold in the lower end of the light business jet market with the G1000 on Part 23 certified aircraft like the Embraer Phenom 100 and Phenom 300. The G5000 in the Citation TEN validates Garmin in the Part 25 market. We would not be surprised to see Garmin expand its product line to fill in the gap between the Phenom 100 and Citation TEN and pursue large cabin business jets (Bombardier Global Express, Gulfstream, etc) in the next 5-10 years and large commercial aircraft (Boeing and Airbus) in the next 10-15 years... While we are encouraged by its traction in the Part 23 and 25 business jets market, the revenue opportunity is still 2-3 years out. We maintain our Underperform due to continued near-term concerns in the declining PND market." At the moment, Bank of America has a price target of $30 on Garmin. On Monday, Garmin closed the day at $33.42, or 0.3% below Friday's close.