Logitech’s Strategic Adjustments and Macroeconomic Uncertainties Lead to Hold Rating

Logitech (LOGI – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Didier Scemama from Bank of America Securities reiterated a Hold rating on the stock and has a CHF74.00 price target.

Didier Scemama has given his Hold rating due to a combination of factors including macroeconomic uncertainties and Logitech’s strategic adjustments in manufacturing. The decision by the US administration to lower reciprocal tariffs on China, along with Logitech’s efforts to reduce its manufacturing exposure in China, has led to an increase in the price objective from CHF 65 to CHF 74. Despite this positive development, Scemama maintains a cautious stance due to ongoing macroeconomic challenges, which are reflected in his below-consensus estimates for Logitech’s FY27 revenue and earnings per share.
Logitech’s ability to adapt its manufacturing strategy, particularly its “China+5” approach, has been a positive factor, allowing the company to mitigate some of the impacts of the current tariff environment. While there is potential for gross margins to improve due to lower tariffs, the extent of this improvement remains uncertain. Factors such as future tariff rates and the pace of production shifts out of China will play significant roles in determining the financial outcomes. Therefore, Scemama’s Hold rating reflects a balanced view of both the opportunities and risks facing Logitech.

In another report released on May 6, Loop Capital Markets also maintained a Hold rating on the stock with a $78.00 price target.