Garmin Navigates Its Tough Supply Environment With Long-Term Roadmap in Mind; Shares Attractive

In its first quarter, narrow-moat Garmin beat our top-line expectations while coming in below our bottom-line estimates, as the firm invests further into its OEM capabilities and continues tackling supply chain constraints. Despite a conservative maintained outlook for fiscal 2022, we believe Garmin will maintain its position as a navigation powerhouse. We see ample long-term growth ahead for Garmin, fueled by COVID-19-induced activities, which we think the market has been significantly underestimating. We are maintaining our fair value estimate for Garmin of $150 per share. With shares trading around $109 per share, we believe Garmin is an excellent buying opportunity.