Logitech leaps ahead: UBS lifts target as growth momentum builds

Investing.com -- UBS has lifted its price target for Logitech (SIX:LOGN) to CHF100 from CHF91, citing stronger-than-expected growth momentum across several of its business lines. 

Shares of the Swiss company were up 1.4% at 06:45 ET (10:45 GMT).

The brokerage raised its earnings-per-share estimates for fiscal years 2025 to 2027 by 11% to 13% following positive industry checks and survey data. 

Analysts reiterated their “buy” rating, flagging execution in key markets, resilient demand for peripherals, and gains in gaming and business-to-business segments as drivers of the upward revision.

The brokerage said it expects Logitech’s second-quarter 2026 results, due at the end of October, to show at least 5% organic sales growth and non-GAAP operating profit of $205 million, ahead of the $189 million consensus. 

For the full year, UBS forecasts non-GAAP operating profit rising 7% year over year to $826 million, versus the market’s $784 million expectation. 

Analysts also see 5% to 10% upside risk to consensus estimates as pricing holds steady and demand signals remain supportive.

Pricing has been a key factor in the company’s resilience. According to UBS’s pricing tracker, Logitech was quicker than peers in passing on tariff-related cost increases, resulting in consumer prices that have remained relatively stable. 

Average selling prices in the U.S. rose about 10% year over year without materially affecting demand. 

UBS noted that Logitech’s position may strengthen further during the year-end season as peers begin to follow with their own price adjustments.

Survey work from UBS Evidence Lab indicated positive purchase intentions for PC peripherals despite a challenging consumer backdrop. 

Logitech ranked among the top two in perceived product quality and innovation, with improvements especially visible in China after the company adopted a new go-to-market strategy. 

That shift helped stabilize its position in lower-end product categories, where it had been losing share.

Financially, Logitech is projected to deliver revenues of $4.78 billion in fiscal 2026, up 4.9% from the prior year. 

Net earnings are expected to reach $668 million, compared with $650 million in 2025. Diluted earnings per share are forecast at $4.51 for fiscal 2026, up from $4.13 in 2025.

UBS’s revised valuation reflects a modest uplift in operating margin assumptions, raising mid-term discounted cash flow margins by 50 basis points to 16.5% on improved sales leverage and pricing power. 

At around 20 times forecast 2026 earnings excluding net cash, Logitech’s valuation is broadly in line with its historical average. 

UBS said continued positive earnings momentum and upside risks to consensus estimates should support investor sentiment.