Erik Woodring, an analyst from Morgan Stanley, maintained the Hold rating on Logitech (LOGI – Research Report). The associated price target remains the same with $96.00.
Erik Woodring has given his Hold rating due to a combination of factors impacting Logitech’s outlook. While the company has raised its long-term revenue growth guidance to 7-10%, this optimistic projection is overshadowed by a more conservative near-term forecast for FY26, which falls below market expectations. The anticipated growth in revenue and operating income for FY26 is modest, with only a 1% year-over-year increase in revenue and a slight decline in operating income, making the long-term targets seem ambitious.
Additionally, although management has outlined plans for expansion into new markets such as healthcare and education, these efforts are expected to contribute only marginally to overall growth. The company’s core segments, including Video Collaboration and Gaming, remain consistent drivers of growth, but there is no significant change in the overall business strategy. Given these mixed signals, the market may not fully credit Logitech for its long-term growth potential, leading to a balanced risk/reward scenario that supports a Hold rating.
In another report released on February 27, Deutsche Bank also maintained a Hold rating on the stock with a CHF85.00 price target.