Analyst Sees Attractive Entry Point for Garmin Stock

The stock has been fighting higher since its December lows

Deputy Editor
Jan 5, 2022 at 10:31 AM
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The shares of Switzerland-based Garmin Ltd (NYSE:GRMN) are up 2.3% to trade at $136.59 at last check, after an upgrade from Deutsche Bank to "buy" from "hold," with a price-target hike to $160 from $148. The firm cited several factors, including the stock's current valuation, as well as the smartwatch maker's favorable business environment. 

On the charts, GRMN recently bounced off its mid-December low at the $28 level -- its lowest point since March. However, the stock's 40-day moving average has kept a lid on gains. Year-over-year, the equity is up 15.3%.

Of the nine analysts in coverage, five still carry a tepid "hold" rating on Garmin stock. Meanwhile, the 12-month consensus price target of $164.86 is a 20.7% premium to current levels, and represents an area that rejected the stock in late October. 

Now could be a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per GRMN's Schaeffer's Volatility Index (SVI) of 21%, which sits in the 16th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 81 out of 100, meaning the stock has exceeded option traders' volatility expectations during the past year.

 

 

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