Analyst Asiya Merchant from Citi maintained a Hold rating on Logitech (LOGI – Research Report) and keeping the price target at $105.00.
Asiya Merchant has given her Hold rating due to a combination of factors influencing Logitech’s financial outlook. The company’s reaffirmation of its FY25E guidance was overshadowed by a FY26E sales and operating income forecast that fell short of both Street and Citi expectations. This shortfall is attributed to considerations such as tariffs, foreign exchange impacts, and increased investments aimed at driving growth.
Despite Logitech’s strong cash flow generation and an accelerated share repurchase program, the stock is currently trading at a valuation that aligns with its historical median. This suggests that the shares are fairly valued at present. Furthermore, while there are growth opportunities in sectors like hybrid work and gaming, and potential gains in B2B markets, these are tempered by ongoing challenges such as tariffs and inflation. Consequently, Asiya Merchant maintains a neutral stance on the stock.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $96.00 price target.