NEW YORK (TheStreet) -- Shares of Garmin (GRMN) - Get Reportwere lower by 1.66% to $41.98 in early market trading on Thursday, after the navigation and wearable fitness devices maker was issued a downbeat note by analysts at JPMorgan Chase this morning.
The maker of the Vivofit fitness band was downgraded to "underweight" from "neutral" with a lower price target of $40 from $42.
JPMorgan analysts think Garmin's fitness segment is slowing down, and expects the the company to underperform versus its peers over the next six to 12 months.
The GPS-based gadgets maker reported its latest quarterly earnings results yesterday.
For the second quarter, the company earned 72 cents per diluted share on revenue of $773.8 million.
Earlier this month, Garmin stock fell after the company negatively pre-announced its second quarter earnings results.
The navigation and wearable fitness devices maker said it expected second quarter profit to come in between 70 cents to 72 cents per share. The Wall Street consensus estimate called for earnings of 89 cents per share for the period.
Garmin pointed to the negative impact of the stronger dollar as well as the increasingly competitive fitness market for the outlook, according to The Wall Street Journal.
Switzerland-based Garmin provides navigation, communication and information devices and applications, which are enabled by global positioning system technology.
Separately, TheStreet Ratings team rates GARMIN LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GARMIN LTD (GRMN) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
You can view the full analysis from the report here: GRMN Ratings Report