Analysts Cut Rating of GPS Maker

Citing weak consumer spending and increased competition from smart phones and several "Droid" models, analysts at Bank of America/Merrill Lynch on July 2 cut the rating of GPS maker Garmin Ltd. from "buy" to "underperform," according to Forbes.com.

Analysts also lowered Garmin's price target from $43 to $26.

The increased competition comes from smart phones like the iPhone from Apple and several "Droid" models powered by Google that now include built-in GPS systems.

Tom Reese and Paul Rubillo of Dividend.com wrote on the Forbes site that they have been avoiding shares of Garmin since June 2008. "We would remain on the sidelines for now," Reese and Rubillo wrote.