While Garmin's Sprint Ahead Looks Weak After Beat – Well Placed for Marathon; Shares Attractive

In its fourth quarter, narrow-moat Garmin came in well above management's and our non-GAAP earnings expectations thanks to revenue and operating margins clocking in above guidance as Garmin went the distance even with a tough compare. Despite a mixed 2022 outlook that is tainted by supply chain issues, metrics indicative of long-term health are stellar in our view. We think that Garmin will be able to weather the tough short-term terrain ahead in pursuit of a more normalized, favorable margin profile--to pair with immense demand for Garmin offerings. As we roll our model for the new year ahead, we are increasing our fair value estimate for Garmin to $150 per share from $143 per share. With shares trading around $118 per share, we think now is an excellent time for investors to buy Garmin stock at these coordinates given implied upside near 30%.