Sam Boughedda

Investing.com — Garmin (NYSE:) shares dropped 2.3% Friday, even though Tigress Financial analyst Ivan Feinseth increased the price target for Garmin to $208 instead of $205. 

Analyst maintained strong buy rating and stated to investors that “resilient” business models, ongoing innovation, product launches, strong demand trends, and continued growth potential of the company were key factors.

Feinseth wrote that strong brand equity and the company’s diverse product portfolio would continue to drive long term growth. They will also overcome short-term supply chain problems and margin pressures. This was highlighted by Q1 revenues, an increase in dividends, and a newly authorized share repurchase author.

Garmin has just reported record revenues of $1.17billion for the first quarter. Strong demand for Garmin’s adventure watches drove this increase.

Analyst added that “Q1 results emphasize the strength of its diversified products portfolio and its highly integrated manufacturing capabilities.”

Stocks of the company are down 22.5% by 2022

“Our 12-month target price of $208 combined with GRMN’s current dividend yield represents a potential total return of over 95% from current levels,” wrote Feinseth.