Logitech Analyst Sees Investors Unlikely To Engage Pending Signs Of Bottoming

Citigroup analyst Asiya Merchant maintains Logitech International SA LOGI with a Buy and lowers the price target from $70 to $60.
Logitech provided a much more bearish outlook on consumer hardware spending trends, relative to some peers Lenovo Group Ltd LNVGY, HP Inc HPQ, Dell Technologies Inc DELL, Corsair Gaming, Inc CRSR with slight improvement likely from March '23 levels.
Management attributed the weak guide to limited visibility and persistent macro headwinds, although the analyst senses conservatism amidst a CFO transition is also in play.
On a positive note, Logitech reiterated long-term targets backed by TAM of gamers, hybrid workers, and content creators, leading market share across several categories, ASP premiumization, and potential for margins to pick up.
The analyst believes the share price currently reflects macro headwinds.
However, the analyst sees investors as unlikely to engage until signs of bottoming emerge, in the Thursday note titled "Cutting Expectations Amidst More Bearish Outlook Than Peers."
Barclays analyst Tim Long maintains Logitech with an Overweight, lowering the price target from $65 to $60.
Morgan Stanley analyst Erik Woodring maintains Logitech with an Underweight, raising the price target from $39 to $40.
Price Action: LOGI shares traded higher by 2.8% at $54.18 on the last check Thursday.
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