UPDATE: D.A. Davidson Reiterates On Garmin Ltd. Following Q3 EPS Report

In a report published Thursday, D.A. Davidson analyst JB Groh reiterated a Neutral rating on

, and raised the price target from $55.00 to $60.00. In the report, D.A. Davidson noted, “We are raising our price target from $55 to $60, which is ~14.5x our FY15 EPS estimate of $3.15 net of cash and investments per share (~$14). We believe investors are a bit spooked today by results in the fitness segment relative to Street expectations and the magnitude of the sequential decline in revenue. Management explained the sequential dip as seasonality related to fitness products, which makes logical sense but is difficult to confirm given the newness of the product lines. That said, we are maintaining our cautious outlook on Garmin as competition in the wearables arena seems to be increasing almost daily. We are maintaining our NEUTRAL rating, noting that we expect management will continue to redistribute cash to investors through buybacks and higher dividends.” Garmin Ltd. closed on Wednesday at $53.96.