Morgan Stanley Forecasts Strong Price Appreciation for Logitech International (NASDAQ:LOGI) Stock

Key Points

• Morgan Stanley raised Logitech’s price target from $90 to $94 but maintained an “underweight” rating, implying approximately 4.2% downside from the reported $98.11 share price.
• Logitech beat quarterly expectations with adjusted EPS of $1.51 versus $1.34 expected and revenue of $1.22 billion versus $1.21 billion, while revenue grew 2.8% year over year.
• Despite the earnings beat, shares fell sharply as investors focused on weaker reported profitability, deteriorating free cash flow and margin concerns; analysts’ overall consensus remained “Hold,” with an average target of $106.29.

Logitech International (NASDAQ:LOGI - Get Free Report) had its price target raised by equities research analysts at Morgan Stanley from $90.00 to $94.00 in a report released on Wednesday, Benzinga reports. The brokerage currently has an "underweight" rating on the technology company's stock. Morgan Stanley's price target indicates a potential downside of 4.19% from the company's current price.

A number of other analysts have also issued reports on LOGI. Weiss Ratings lowered Logitech International from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday. JPMorgan Chase & Co. cut their target price on shares of Logitech International from $102.00 to $94.00 and set a "neutral" rating for the company in a research note on Tuesday, October 13th. Wedbush dropped their price objective on shares of Logitech International from $135.00 to $130.00 and set an "outperform" rating on the stock in a report on Wednesday, July 29th. Bank of America downgraded shares of Logitech International from a "neutral" rating to an "underperform" rating and set a $86.00 price objective on the stock. in a report on Tuesday, June 30th. Finally, Barclays upped their price objective on shares of Logitech International from $101.00 to $110.00 and gave the company an "equal weight" rating in a research report on Wednesday. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $106.29.

Logitech International Price Performance

Shares of NASDAQ LOGI traded down $13.71 during trading hours on Wednesday, hitting $98.11. 1,970,610 shares of the stock were exchanged, compared to its average volume of 1,086,876. Logitech International has a one year low of $83.32 and a one year high of $129.66. The company's 50 day moving average is $102.01 and its 200 day moving average is $99.71. The firm has a market capitalization of $14.38 billion, a P/E ratio of 18.00, a P/E/G ratio of 4.08 and a beta of 1.14.

Logitech International (NASDAQ:LOGI - Get Free Report) last announced its earnings results on Tuesday, October 27th. The technology company reported $1.51 EPS for the quarter, topping the consensus estimate of $1.34 by $0.17. The firm had revenue of $1.22 billion for the quarter, compared to the consensus estimate of $1.21 billion. Logitech International had a net margin of 16.28% and a return on equity of 37.30%. The business's quarterly revenue was up 2.8% on a year-over-year basis. During the same quarter last year, the firm posted $1.45 EPS. Research analysts anticipate that Logitech International will post 5.14 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Samantha Harnett sold 16,265 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $101.35, for a total transaction of $1,648,457.75. Following the sale, the insider owned 37,097 shares in the company, valued at approximately $3,759,780.95. This represents a 30.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.15% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Assenagon Asset Management S.A. grew its holdings in Logitech International by 2,227.1% during the 2nd quarter. Assenagon Asset Management S.A. now owns 1,045,742 shares of the technology company's stock worth $98,189,000 after acquiring an additional 1,000,805 shares during the last quarter. Amundi grew its stake in shares of Logitech International by 51.2% during the first quarter. Amundi now owns 1,665,096 shares of the technology company's stock valued at $151,724,000 after purchasing an additional 563,564 shares during the last quarter. Renaissance Technologies LLC grew its stake in shares of Logitech International by 26.6% during the first quarter. Renaissance Technologies LLC now owns 2,072,508 shares of the technology company's stock valued at $188,847,000 after purchasing an additional 435,000 shares during the last quarter. SEB Asset Management AB acquired a new stake in shares of Logitech International in the first quarter valued at approximately $27,567,000. Finally, Public Employees Retirement System of Ohio acquired a new stake in shares of Logitech International in the second quarter valued at approximately $18,281,000. 45.76% of the stock is owned by institutional investors.

Logitech International News Roundup

Here are the key news stories impacting Logitech International this week:

• Positive Sentiment: Logitech reported fiscal Q2 adjusted earnings of $1.51 per share, ahead of the $1.34 analyst consensus, while revenue of $1.22 billion slightly exceeded estimates of $1.21 billion. Revenue increased 2.8% year over year, supported by gaming and conferencing products. Logitech Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Barclays raised its Logitech price target from $101 to $110, implying upside from recent levels. However, the firm maintained an “equal weight” rating, suggesting limited conviction that the stock will outperform. Barclays Logitech Ratings
• Neutral Sentiment: Analysts’ consensus price target was reported at approximately $104.14, modestly above recent trading levels, while the company issued an outlook for the fiscal third quarter. Analyst Consensus for Logitech Stock
• Negative Sentiment: Investors focused on the quality of Logitech’s earnings rather than the headline beat. GAAP profit was weaker than adjusted results, earnings declined from the prior year on a reported basis, and free cash flow reportedly deteriorated. These issues raised concerns about margins and contributed to the selloff. Why Logitech Stock Crashed After Earnings
• Negative Sentiment: Reuters reported that Logitech lost significant market value as profit-taking and margin concerns overshadowed the quarterly profit beat. The reaction indicates that investors may have expected stronger profitability and cash generation despite the revenue and adjusted-EPS results. Logitech Margin Concerns Overshadow Profit Beat

Logitech International Company Profile

Logitech International designs and manufactures hardware and software that connect people to digital devices and support communication, collaboration, content creation and gaming. Its products are sold under the Logitech brand and are used by consumers, businesses, educators, gamers and other professional users worldwide.

The company's portfolio includes computer mice and keyboards, webcams, headsets, microphones, speakers, video-conferencing systems, presentation tools and gaming peripherals.

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