On Wednesday September 1, 2010, 1:09 pm
NEW YORK (AP) -- Shares of navigation device maker Garmin Ltd. jumped Wednesday after an upgrade from an analyst at Wedbush, who said the company's outdoor and fitness products could provide future growth.
THE SPARK: Wedbush analyst Scott Sutherland upgraded the company to "Neutral" from "Underperform" in a note to investors.
THE BIG PICTURE: Garmin's GPS units face competitive pressure from the growing number of smart phones that offer driving directions.
THE ANALYSIS: Sutherland said the company could find growth with some of its other products, including those that monitor heart rate and pace for runners, for instance. Garmin also makes tools for sea and air navigation.
Sutherland expects revenue this year to rise 19 percent in the company's outdoor and fitness division, 13 percent in the marine unit and 3 percent in the aviation unit.
SHARE ACTION: The company's stock rose $1.34, or 5 percent, to $27.95 on Wednesday.