By Sam Boughedda
Investing.com --Garmin Ltd (NYSE:GRMN) rose 1% on Friday after Tigress Financial reiterated a strong buy rating and $205 price target.
Tigress analyst Ivan Feinseth said the company, which reported a fourth quarter earnings and revenue beat earlier this month, has a "strong balance sheet and cash flow continue to drive ongoing investment in new product development."
He added that the company's strong brand equity and innovative capability will continue to drive a market-leading return on capital that will continue to drive gains in economic profit and long-term shareholder value creation."
The analyst also pointed to the company's proposed 9% quarterly dividend increase as a reason to be bullish, with Garmin continuing its history of annual dividend increases.
"We believe significant upside in the shares exists, and the recent pullback is a major buying opportunity. Our 12-month target price of $205 represents a potential return of over 85% from current levels," Feinseth concluded.