|[Very close to my opinion except that the Banc of America Analyst Ronald Tadross fails to point out that the proliferation of GPS with cellphones while push NVT a lot higher will may have a negative impact on Garmin. And the PDA GPS popularity will help NVT more than GRMN because the low priced PDAs will create severe competitions to GRMN]|
Out of the Gate: Garmin Edges Up
Tuesday July 10, 10:28 am ET
Garmin Down From All-Time High, Analyst Says Rising Navigation Device Sales Are Priced In
NEW YORK (AP) -- Shares of personal navigation device maker Garmin Ltd. reached an all-time high for the third consecutive trading day Tuesday, but later retreated.
Garmin shares peaked at $79.64 in the first minutes of trading. Through Monday, the stock had advanced 41.5 percent in 2007.
After the markets closed on Monday, Banc of America analyst Ronald Tadross initiated coverage of Garmin with a "Neutral" rating and an $84 price target. He said more people will buy navigation devices as prices fall, putting the devices in more than a third of U.S. cars in the next three years.
Garmin has half of the market, he said.
However, Tadross believes most of those increased sales are already priced into the stock. He said shares of Navteq Corp., which provides digital map data used in systems like Garmin's, are less risky. Navteq is trading at a discount by comparison, he added.
Twelve analysts now rate Garmin stock at "Neutral" or the equivalent, while six rate Garmin shares at "Buy" and two at "Sell."
Garmin stock rose 36 cents to $79.25.
Navteq shares gained 80 cents to $44.25.
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