Garmin (NASDAQ:GRMN) Weighed Down by PND Declines

With the PND segment accounting for 60 percent to 70 percent of Garmin's (NASDAQ:GRMN) sales, Barclays (NYSE:BCS) says they remain cautious of the company in a time of transition.

Barclays noted, "Following recent meetings at the Barclays Capital Global Technology Conference and our EU IT hardware team's initiation on TomTom, we update our outlook on Garmin. Overall, while near-term trends remain stable, the company is clearly in transition as its strategy is to drive growth from its Aviation, Marine and Outdoor/Fitness segments while managing a maturing PND business.

"...While over time we believe a number of the company's initiatives in its core business and new initiatives (e.g., in-dash) should help to drive top line growth, the uncertainty around the pace of PND declines keeps us cautious as the segment still contributes 60-70% of sales."

Barclays maintains an "Equalweight" rating on Garmin Ltd., which closed Tuesday at $31.32, up $0.81, or 2.65 percent. Barclays has a price target of $30 on them.