Morgan Stanley Upgrades Garmin (GRMN), Raises Price Target to $252 from $195

We recently published an article titled 13 Best Internet of Things (IoT) Stocks to Buy Now.

On February 19, Morgan Stanley upgraded Garmin Ltd. (NYSE:GRMN) to Equal Weight from Underweight and raised its price target to $252 from $195, stating that its prior negative thesis has largely played out. The firm cited stronger-than-expected 2026 revenue and margin guidance, which it views as conservative, as a catalyst for improved sentiment.

The company reported full-year 2025 consolidated revenue of $7.246 billion, up 15% year over year and a new annual record, while fourth-quarter revenue reached $2.125 billion, increasing 17% year over year and surpassing $2.0 billion for the first time in a single quarter. Pro forma EPS for 2025 was $8.56, up 16% year over year, with fourth-quarter pro forma EPS of $2.79, also up 16%. Garmin Ltd. (NYSE:GRMN) ended the year with approximately $4.1 billion in cash and marketable securities and generated approximately $1.4 billion in free cash flow. The company proposed an annual dividend of $4.20 per share, representing a 17% increase, and approved a $500 million share repurchase program. For 2026, management guided to consolidated revenue of approximately $7.9 billion, gross margin of about 58.5%, operating margin near 25.5%, and operating income exceeding $2.0 billion for the first time, with pro forma EPS projected at approximately $9.35. Guidance incorporates anticipated memory cost pressures and tariff impacts, offset by favorable product mix and supply chain initiatives. Strong revenue growth, margin resilience, and substantial capital returns reinforce Garmin’s ability to compound earnings through diversified end markets.

Garmin Ltd. (NYSE:GRMN), founded in 1989 and headquartered in Olathe, Kansas, specializes in wearable technology, GPS, and communication devices, serving consumer, aviation, marine, and fitness markets through connected IoT-enabled products.

While we acknowledge the potential of GRMN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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