Logitech International S.A.

Prosper Stars & Stripes disclosed in its second-quarter 2026 investor letter that it has shorted Dolby Laboratories, Universal Display Corp and Logitech International on the theme that the AI investment boom is crowding out spending elsewhere. The fund said cost pressures on technology components such as DRAM will push consumer electronics prices higher, hitting back-to-school and holiday spending, the key periods for these companies' end markets, and it expects the forecasts these companies are providing at this time of the year to prove optimistic. It added that the so-called K-shaped economy, in which consumers feel the pressure of rising living costs, will continue to squeeze discretionary purchases, and that rising prices make it nearly impossible to use discounts to stimulate sales. Dolby Laboratories closed at $61.91 per share on September 14, 2026, with a market capitalization of $5.79 billion, a 52-week range of $48.26 to $73.01, a 1.33% return over the past month and a 14.24% loss over the past 52 weeks. The fund's portfolio returned a net 30.1% in the second quarter of 2026, against 21.5% for the Russell 2000 Index and 10.3% for the HFRX Equity Hedge Index, and is up 23.7% year to date versus 22.6% for the Russell 2000 and 9.7% for the HFRI Equity Hedge Index. Twenty-eight hedge fund portfolios held Dolby Laboratories at the end of the second quarter, unchanged from the previous quarter.

The Swiss Market Index fell 93.61 points, or 0.65%, to close at 14,392.49 on Thursday, underperforming most European peers amid earnings reactions and geopolitical concerns. Logitech International tumbled 6.5%, extending its decline after reporting a serious supply chain disruption in its fiscal first-quarter earnings, with a Barclays price-target cut adding pressure. Roche and Novartis each lost about 2.3%, while VAT Group climbed 4% and ABB gained 3.1%. The KOF Economic Barometer rose to 103.5 in July from an upwardly revised 102.1 in June, beating expectations and reaching its highest level since February.

Logitech warned that a temporary shutdown at a key semiconductor supplier will reduce second-quarter sales by $20 million and third-quarter sales by as much as $200 million, sending shares down 5%. The third quarter encompasses the peak holiday shopping season and is traditionally the company's most important period. CEO Hanneke Faber called the issue temporary and said the operations team remains a powerhouse, while Citi analyst Asiya Merchant maintained a Buy rating citing strong execution. Logitech's fiscal first-quarter revenue rose 7% to $1.23 billion and adjusted earnings per share jumped 47% to $1.85, both beating estimates, but the company declined to issue full-year guidance due to the supplier incident.

Bank of America downgraded Logitech to Underperform from Neutral, citing expectations that recent price hikes on PCs, tablets, and smartphones will materially worsen demand for the computer peripherals company over the next 12 to 18 months. Analyst Didier Scemama lowered fiscal 2027 to 2029 earnings per share estimates by 6 to 11 percent and cut the price objective from 85 Swiss francs to 70 Swiss francs. Scemama noted that price increases of up to 25 percent on devices could push consumers toward lower-priced alternatives, potentially pressuring gross margins into the high-30 to low-40 percent range despite management's ability to hold margins above 43 percent. The analyst also expects operating expenses to decline by 2.8 to 10.5 percent over the period, though marketing and promotional costs may remain elevated amid weaker demand.

Piper Sandler double upgraded Block to Overweight from Underweight and raised its price target to $100 from $58. Arete downgraded Trade Desk to Sell from Neutral with an $11.60 target. Other notable calls include Deutsche Bank upgrading Comcast to Buy, HSBC cutting Fortinet to Reduce, and Bank of America downgrading both Logitech and Scorpio Tankers to Underperform. New coverage was initiated on Klarna with a Market Perform at Citizens and on Visa with an Overweight at Piper Sandler.

The Swiss stock market ended lower on Thursday, with the benchmark SMI losing 46.96 points or 0.37% to close at 12,553.19. Rising inflation and a surge in coronavirus cases across several countries weighed on sentiment, while data showing a 1.5% monthly drop in Swiss exports during October added to the negative mood. Among major decliners, Logitech fell 2.46% and Holcim dropped 2.33%, while Credit Suisse and UBS Group both shed about 1.75%. On the upside, Sika climbed 2.2% and Givaudan gained 1.26%. The trade surplus widened to CHF 4.409 billion in October from CHF 4.328 billion in September, and watch exports rose 4.8% year-on-year.