Impressive Logitech Performance Spurs Analysts To Increase Price Targets, Despite Lowered Future Revenue Estimates

Analysts raised the price target of Logitech International SA LOGI following strong Q4 FY23 earnings released yesterday. 

The company reported Q1 FY24 revenue of $974.5 million, down 16% Y/Y (-15% in constant currencies), exceeding the consensus of $912.3 million, and adjusted EPS of $0.65, beating the consensus of $0.45.

For H1 FY24, Logitech revised guidance for sales to $1.875 billion - $1.975 billion (+19% - 14% Y/Y; from $1.8 billion - $1.9 billion earlier) and adjusted operating income to $180 million - $220 million (+40% - 27% Y/Y; from $160 million - $190 million earlier). 

The company provided FY24 guidance for sales at $3.8 billion - $4.0 billion (vs. consensus: $4.1 billion) and adjusted operating income of $400 million - $500 million (+32% - 15% Y/Y).

At a Neutral rating, Citigroup increased the price target to $75 from $70 and Wedbush to $80 from $63.

Wedbush analyst Alicia Reese lowered estimates for revenues to $4.081 billion (from $4.196 billion) for FY24, $4.286 billion (from $4.552 billion) for FY25, and $4.641 billion (from $4.941 billion) for FY26. 

On the other hand, Citigroup analyst lowered the EPS estimate to $2.82 (from $2.92) for FY24 and $3.59 (from $3.64) for FY25.

Also, Barclays analyst upped the price target to $81 from $71 at an Overweight rating. 

Morgan Stanley analyst raised the price target to $67 from $57 at an Equal-Weight rating.

Price Action: LOGI shares are trading higher by 0.85% at $72.13 on the last check Wednesday.