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Investing.com - Citi has raised its price target on Logitech (SIX:LOGN) International (NASDAQ:LOGI) to $100.00 from $85.00 while maintaining a Neutral rating on the stock. The company, currently trading at a P/E ratio of 22.7x and showing strong momentum with a 15.3% year-to-date return, is trading above its InvestingPro Fair Value.
The firm cited pricing traction and operating expense improvements as key factors behind the target increase, which represents a significant jump from its previous $85.00 valuation. These improvements are reflected in Logitech’s impressive financial health metrics, with an InvestingPro Overall Score of "GREAT" and robust gross margins of 43.3%.
Citi noted that Logitech is experiencing steady demand and expects the company to maintain its gross margin guidance of approximately 41.5% for the June quarter, with a longer-term model of 40%+ supported by a resilient consumer base despite pricing actions. The company’s strong balance sheet, with more cash than debt and a current ratio of 2.35x, provides additional stability to support these initiatives.Discover 12 more exclusive insights about Logitech with an InvestingPro subscription, including detailed valuation analysis and growth prospects.
The research firm highlighted that Logitech’s video conferencing segment is benefiting from reduced corporate travel spending, while new AI features in video conferencing products reinforce the company’s segment superiority.
Citi’s new price target is based on a 16x EV/EBIT multiple, up from 15x previously, reflecting the significant rise in industry multiples over the past 90 days, though the firm maintains its Neutral stance due to Logitech’s premium valuation versus peers and balanced risk-reward profile.
In other recent news, Logitech International reported its fiscal year 2025 revenue for the March quarter, reaching $1 billion, marking a 2% year-over-year growth in constant currency terms. This stable performance comes despite ongoing macroeconomic uncertainties. Logitech’s Keyboards & Combos and Pointing Devices segments showed positive results, while Webcams experienced mid-single-digit growth. However, the Gaming segment saw a slight 2% decline in constant currency terms.
UBS analyst Joern Iffert upgraded Logitech’s stock rating from "Neutral" to "Buy," citing the company’s healthy margins and cash flows. Despite lowering the price target to CHF 80, Iffert noted Logitech’s strong balance sheet and its $2 billion share buyback program. UBS forecasts attractive earnings per share growth for Logitech in fiscal years 2027-2028, with expected EPS growth of over 16% and 8%, respectively.
Meanwhile, Loop Capital Markets reduced its price target for Logitech shares to $78 from $97, maintaining a Hold rating. Logitech has been addressing tariff impacts, with 40% of its U.S. products currently sourced from China, and aims to reduce this to 10% by the end of 2025. The company has implemented selective price increases in the U.S. since mid-April to mitigate these impacts, with further adjustments potentially forthcoming.
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