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.
Logitech International S.A.Bank of America downgrades Logitech due to price hikes worsening demand
Bank of America Corp