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Pro Analysis

Garmin to drop 14% on new competition, Goldman says

A Garmin Fenix 3 smartwatch.
Chris Ratcliffe | Bloomberg | Getty Images
A Garmin Fenix 3 smartwatch.

Investors should sell Garmin shares due to the competitive threat from new Apple and Fitbit products later this year, according to Goldman Sachs, which lowered its rating on the company to sell from neutral.

"We see downside to estimates into a competitive holiday season as Garmin will face stronger direct competition from Fitbit as well as 'share of wallet' competition from the new Apple Watch and other consumer electronics categories (VR headsets, 360-degree/action cameras, drones, home assistants), while facing tougher comps," Goldman's Simona Jankowski wrote in a note to clients Wednesday.