BRIEF: Garmin competitor TomTom shares fall on analyst concerns

Tue. July 08, 2008; Posted: 01:30 PM

Jul 08, 2008 (The Kansas City Star - McClatchy-Tribune Information Services via COMTEX) -- TMOAF | Quote | Chart | News | PowerRating -- Shares of Garmin competitor TomTom fell to a new low today after analysts cut their forecasts for the company's stock by as much as 50 percent.

TomTom, based in Amsterdam and the world's No. 2 navigation device manufacturer, could have problems meeting financing requirements for its $4.3 billion purchase of mapmaker Tele Atlas, said Goldman Sachs analyst Tim Boddy.

Boddy wrote in a note today that TomTom may break its agreements with banks financing the purchase and be forced to raise capital.

That report was more upbeat than one from Exane BNP Paribas analyst Alexander Peterc. The Paris-based analyst cut his forecast for shares of TomTom by 50 percent, to just under $16.

Peterc told investors to expect "another turn for the worse."

TomTom shares, traded on the Amsterdam exchange, were selling today at about $22.

Garmin, the world's No. 1 portable navigation device manufacturer, and TomTom are battling for market share in the fast-growing navigation market.

TomTom is No. 1 in Europe. Garmin is No. 1 in the U.S.

Shares of Garmin closed Monday at $42.59, up 64 cents.

Bloomberg News contributed to this report.

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For full details on Garmin Ltd (GRMN) click here. Garmin Ltd (GRMN) has Short Term PowerRatings of 5. Details on Garmin Ltd (GRMN) Short Term PowerRatings is available at This Link.

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