Garmin's full-year revenue guidance has been raised, with the launch of the Edge 1060 expected to accelerate the strengthening of its proprietary software ecosystem.
Garmin raised its full-year revenue guidance to approximately $8.15 billion. This is viewed as indicating that the company's business mix will be maintained even as demand for domain controllers is expected to decline.
The launch of the new Edge 1060 cycling computer is expected to strengthen Garmin's expansion into premium performance hardware linked to its proprietary software ecosystem. Voice control, training tools and the GroupRide feature are cited as factors that could encourage users to remain within the platform.
Analysts' consensus assumes annual revenue growth of 9.1% over the next 3 years and a gradual decline in margins from the current 24.5% to 23.6%. Net income is viewed as potentially reaching approximately $2.3 billion in 2029, and as much as $3.0 billion.
The stock is trading at a high valuation, with the 2029 P/E ratio projected to rise from the current 28.9x to 31.5x. The average price target is $302.00, but estimates range widely from a low of $231.00 to a high of $370.00. The investment view is expected to depend on the validity of the underlying assumptions.