Logitech stock price target raised to $113 from $100 at BofA Securities

Investing.com - BofA Securities has raised its price target on Logitech International (NASDAQ:LOGI) to $113.00 from $100.00 while maintaining a Neutral rating on the stock. The company, currently trading at $108.33 with a market capitalization of $15.1 billion, has demonstrated strong momentum with a 34% gain year-to-date.

The firm cited improved near-term demand trends in the broader gaming ecosystem as the primary reason for the adjustment. BofA noted that recent data points suggest gaming demand is performing better than initially expected. According to InvestingPro data, Logitech maintains a "GREAT" financial health score, with expected revenue growth of 5% for fiscal year 2026.

Following this assessment, BofA Securities has increased its revenue and EPS estimates for Logitech for fiscal years 2026-2028. The adjustments include revenue estimate increases of 0.6-1.5% and EPS estimate increases of 1.3-7.2%.

The price target increase also reflects a higher FY27E EV/EBITDA multiple of 16x, up from the previous 15x, which aligns with Logitech’s long-term median multiple. The historical range for this multiple has been 10x to 21x, excluding COVID-period outliers.

Despite the price target increase, BofA maintained its Neutral rating on Logitech shares, indicating that the improved demand trends appear to be appropriately reflected in the current stock valuation.

In other recent news, Logitech International reported impressive first-quarter fiscal 2026 earnings, surpassing analyst expectations. The company posted adjusted earnings per share of $1.26, significantly beating the anticipated $1.01. Revenue reached $1.15 billion, exceeding the consensus estimate of $1.13 billion and marking a 5% year-over-year increase. The strong financial performance amid challenging market conditions has drawn positive attention. Following these results, BNP Paribas Exane upgraded Logitech’s stock rating from Neutral to Outperform, raising the price target to CHF88.00 from CHF80.00. The upgrade was influenced by Logitech’s ability to surpass consensus estimates for sales, gross margin, and operating profit by 3%, 50 basis points, and 21%, respectively. These developments highlight the company’s resilience and strong market position.

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