Garmin Ltd. (GRMN) confirmed that it was the victim of a cyberattack following many users reporting online outages since last week.
Despite the attack, shares were up 4% at market close on July 27 at $100.29 per share.
In a July 27 press release, the technology company said that it experienced a hack which crippled its website, customer support, customer-facing applications, and company communications. Garmin products were not affected except for the ability to access online services.
According to sources that spoke to TechCrunch, the attack was attributed to a new strain of ransomware called WastedLocker, which encrypts data but doesn’t exfiltrate it. Affected systems can be recovered from backups without having the user or business required to pay a ransom.
The press statement from Garmin highlighted that its customer information was safe, saying, “We have no indication that any customer data, including payment information from Garmin Pay, was accessed, lost or stolen.” Garmin added, “We do not expect any material impact to our operations or financial results because of this outage.”
Garmin states that it expects a return to normal operations over the next few days and that affected systems will be restored. Following the confirmation of the cyberattack, users reported on Twitter, a return to online functionality with Garmin wearables and the Garmin Connect app.
J.P. Morgan analyst Paul Chung noted last month that Garmin app download data is an improving trend in light of the pandemic. He says that since May, daily downloads have seen a “swift” rebound for Connect, Golf, Active Captain, and Explore. The analyst sees momentum through June. As of July 28, he maintains a Buy rating on the stock and a price target of $101, which implies 1% upside potential.
Overall, 3 analysts assign Buy ratings, 3 Hold ratings, and 1 Sell rating, giving GRMN a Moderate Buy Street consensus. The average analyst price target stands at $94.40, suggesting 6% downside potential, with shares already up 3% year-to-date. (See Garmin’s stock analysis on TipRanks).
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