Loop Capital has revised its target price for Logitech (LOGI, Financial), reducing it from $97 to $78 while maintaining a Hold rating on the stock. This adjustment follows the company's first-quarter results, where Logitech faced ongoing macroeconomic challenges. Despite these uncertainties, demand remained steady. However, Logitech is planning selective price hikes in the U.S. starting mid-April. While some product prices will remain unchanged, others will experience significant increases, potentially exceeding ten percent. The company is prepared for further modifications, although the impact of these changes on customer reception is still uncertain.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Logitech International SA (LOGI, Financial) is $87.84 with a high estimate of $113.00 and a low estimate of $74.00. The average target implies an upside of 12.54% from the current price of $78.05. More detailed estimate data can be found on the Logitech International SA (LOGI) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Logitech International SA's (LOGI, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Logitech International SA (LOGI, Financial) in one year is $80.17, suggesting a upside of 2.72% from the current price of $78.05. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Logitech International SA (LOGI) Summary page.
LOGI Key Business Developments
Release Date: April 29, 2025
- Net Sales Growth: 7% constant currency growth for fiscal year 2025.
- Non-GAAP Gross Margin: Increased by 170 basis points to 43.5% for fiscal year 2025.
- Non-GAAP Operating Margin: Increased by 70 basis points, resulting in $775 million operating income.
- Cash from Operations: Generated approximately $840 million in fiscal year 2025.
- Shareholder Returns: Approximately $800 million returned through dividends and share repurchases.
- Operating Expenses: Approximately $1.2 billion, or 26.5% of net sales, including a $23 million bad debt reserve.
- Cash Balance: $1.5 billion at the end of fiscal year 2025.
- First Quarter Fiscal 2026 Outlook: Net sales expected to be flat to +5% in constant currency; gross margins between 41% and 42%; non-GAAP operating income between $155 million and $185 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Logitech International SA (LOGI, Financial) achieved a 7% constant currency net sales growth for fiscal year 2025, with broad-based growth across geographies, product categories, and customers.
- The company expanded its market share in key product categories, maintaining a top position in 11 out of 13 categories.
- Non-GAAP gross margins increased by 170 basis points, and non-GAAP operating margins improved by 70 basis points, resulting in an operating income of $775 million.
- Logitech generated approximately $840 million in cash from operations, exceeding its operating income, and returned about $800 million to shareholders through dividends and share repurchases.
- The company has a diversified manufacturing footprint, reducing reliance on China, which positions it well to mitigate tariff impacts and maintain supply chain resilience.
Negative Points
- Logitech faces uncertainty due to tariff impacts and macroeconomic volatility, which has led to the withdrawal of its long-term financial outlook.
- The company anticipates a 200 basis point negative impact on global gross margins in the first quarter of fiscal 2026 due to tariffs.
- Operating expenses included a $23 million bad debt reserve due to issues with an e-commerce payment provider, impacting financial results.
- The company is experiencing challenges in the European market, with a slowdown in sell-through due to inventory adjustments and cautious B2B customer behavior.
- Logitech's gross margins are expected to decrease in the first quarter of fiscal 2026, with a projected range of 41% to 42%, partly due to tariff impacts and the depletion of pre-tariff inventory.
