GRMN – Given management’s confidence in their segment mix, products, and opportunities, bearish market expectations are unwarranted and upside is likely

• Garmin Ltd (GRMN:USA)currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 16.0x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, which is unwarranted given management’s confidence in their segment mix, new products, and opportunities. As such, outperformance is likely justified
• Specifically, management is confident in their segment mix, and new edge cycling computer line. Additionally, they are confident in their opportunities in the light medical device market. At current valuations, should the firm just maintain Uniform ROA at current levels as management sentiment suggests, equity upside would be warranted