Logitech International (LOGI) PT Lowered to $96 at JPMorgan

JPMorgan analyst Samik Chatterjee lowered the price target on Logitech International (NASDAQ: LOGI) to $96.00 (from $100.00) while maintaining a Neutral rating.

The analyst comments "Logitech at its investor day outlined the growth drivers that have already been enabling the company to drive better than expected revenue in recent quarters, which includes robust growth with Enterprises as well as in Gaming, and additionally outlined incremental drivers in relation to adjacent end-markets that the company is now more aggressively going to pursue while balancing investments. Despite the optimism from the management team in relation to the growth outlook for the underlying markets as well as incremental growth in adjacent markets / verticals, the company still maintained its conservative approach in relation to guiding FY26 revenues (growth guidance for -1% to +3% including FX) as well as margins. While the FY26 guidance might be a bit disappointing for investors following the robust long-term growth drivers outlined by the company, it is unlikely to be a complete surprise to investors who are used to seeing Logitech consistently beat both near-term revenue and margin guidance, particularly when keeping in mind the uncertain macro backdrop at this time with Consumer and Enterprise spending yet to fully recover and the threat of tariffs derailing the expectations of a recovery. The lower growth outlook for FY26 leads to lower margin leverage as well as lower earnings forecasts, but will also likely drive investors to look circumspectly at the long-term guidance for +7%-10% growth given the materially different outcome expected by the company in FY26. While on the surface, LOGI shares might be weak on account of a softer FY26 guidance, we expect interest in LOGI shares to improve with execution to the outlined opportunities driving consistent upsides to revenue and earnings, while positioning the company well on a relative basis in relation to having de-risked the near-term guide for macro uncertainty and tariff impact."

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