Sector Snap: Navigation Stocks Decline

Yair Reiner downgraded Garmin stock to "Perform" from "Outperform" and lowered his profit and sales estimates for 2008 and 2009. In the first quarter, Reiner believes Garmin's sale prices fell about 10 percent in the U.S. and 12 percent in Europe.

European rival TomTom NV cuts its forecasts on Tuesday, citing price cuts and a decline in retailer interest. Reiner said price cuts picked up late in the quarter and thinks they will continue as the year goes on. He said average sale prices could fall close to 30 percent in 2008, as they did last year.

He wrote that customers are cutting back on personal navigation device purchases because of economic weakness. That results in slower growth and more aggressive price cuts.

The analyst removed his price target of $77 per share. The stock, which rose as high as $125.68 in late October, has been trading at annual lows in recent days.

Shares of Cayman Islands-based Garmin fell $1.49, or 3.2 percent, to $45.07.

A Soleil analyst trimmed his estimates for digital map data provider Navteq Corp., as he became more conservative on the navigation market and Garmin, which is a "key customer" for Navteq. The Chicago company's stock fell $5, or 7.1 percent, to $65.97.

Elsewhere in the sector, shares of surveying and construction equipment maker Trimble Navigation Ltd. lost 47 cents to $27.07.

SiRF Technology Holdings Inc., which makes microchips used in global positioning system products, slid 16 cents, or 3 percent, to $5.18.