Analyst Didier Scemama of Bank of America Securities reiterated a Hold rating on Logitech, boosting the price target to CHF97.00.
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Didier Scemama has given his Hold rating due to a combination of factors that reflect both positive performance and underlying uncertainties. Logitech’s recent financial results showed strong execution, with the company outperforming expectations in its second fiscal quarter and providing guidance for the third quarter that exceeded consensus. This success was largely attributed to broad-based growth and effective management of tariff impacts through strategic price increases.
However, despite these positive developments, there are lingering concerns about the resilience of US consumer demand following these price hikes. Additionally, the extent of promotional efforts required to boost US sales, particularly in the gaming segment, remains uncertain. The competitive landscape, especially with increased low-end competition from Chinese firms in Europe, also poses potential challenges. These factors contribute to a cautious outlook, justifying the Hold rating as the company navigates these uncertainties while maintaining solid operational performance.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $92.00 price target.