Loop Capital cuts Logitech stock price target to $78 from $97

On Tuesday, Loop Capital Markets adjusted its price target for Logitech (SIX:LOGN) International (NASDAQ:LOGI) shares, reducing it to $78 from the previous $97, while maintaining a Hold rating on the stock. The decision comes in the wake of Logitech’s fiscal quarter ending in March, where the company reported earnings per share (EPS) of $4.13. According to InvestingPro data, the company maintains a healthy financial profile with an overall health score of "GOOD," though current analysis suggests the stock is slightly overvalued at its present trading level.

Logitech, known for its computer peripherals and accessories, announced its March quarter fiscal year 2025 revenue of $1 billion, which signifies a 2% year-over-year constant currency growth. This performance was noted to be relatively stable despite prevailing macroeconomic uncertainties. The company’s trailing twelve-month revenue reached $4.55 billion, with a solid gross profit margin of 43.3%. InvestingPro subscribers have access to over 10 additional key financial metrics and insights about Logitech’s performance.

The company’s product segments, including Keyboards & Combos and Pointing Devices, showed positive results. Additionally, Webcams experienced mid-single-digit growth. The Gaming segment, while still in demand, saw a slight 2% year-over-year constant currency decline.

Addressing the impact of tariffs, Logitech reported that 40% of its products sold in the U.S. are currently sourced from China. However, the company has set an ambitious target to reduce this figure to 10% by the end of calendar year 2025. As part of its strategy to mitigate tariff impacts, Logitech has begun implementing selective price increases in the U.S. since mid-April. These adjustments vary, with some products remaining at the same price point, while others are subject to double-digit percentage increases. The company acknowledges that further price adjustments may be necessary, and it is yet to observe customer reactions to the changes. With a strong current ratio of 2.35 and minimal debt-to-equity of 0.04, InvestingPro analysis indicates the company is well-positioned to navigate these strategic changes. For detailed insights into Logitech’s financial strength and strategic positioning, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Loop Capital’s revised price target reflects the latest financial results and strategic moves by Logitech as it navigates the complex global trade environment and adjusts its operations accordingly.

In other recent news, Logitech International reported strong financial results for the fourth quarter of 2024, with earnings per share (EPS) of $1.59, surpassing analyst expectations of $1.37. The company also exceeded revenue forecasts, bringing in $1.34 billion against a projected $1.25 billion. These results underscore Logitech’s robust operational performance and market positioning. Additionally, Logitech’s successful merger with KMC has enhanced its portfolio, contributing to a substantial increase in market capitalization.

Meanwhile, JPMorgan has adjusted its price target for Logitech shares to $96 from $100, maintaining a Neutral rating. This adjustment follows Logitech’s investor day presentation, highlighting growth in the Enterprise and Gaming sectors. However, the company has issued a conservative fiscal year 2026 revenue guidance, projecting a range from a 1% decline to a 3% increase.

In contrast, BofA Securities downgraded Logitech’s stock rating from Neutral to Underperform, lowering the price target to $90 from $105. The firm cited a challenging growth outlook and revised its revenue and earnings estimates for fiscal years 2026 and 2027. BofA expressed caution regarding Logitech’s future growth, particularly in the Pointing Devices and Gaming segments, while maintaining a slightly more positive view on the Video Collaboration segment.

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