Logitech downgraded to Underperform as price target cut 18% to CHF70
LOGI•Bank of America downgraded Logitech to Underperform with an 18% price target cut to CHF70, forecasting demand deterioration over 12-18 months as hardware price hikes hit accessory sales. BofA trimmed FY27-FY29 EPS by up to 10.7% and projects revenues of $4.8 billion in FY27, falling to $4.6 billion in FY28.
1. Downgrade and Price Target Cut
Bank of America reduced Logitech's rating to Underperform and lowered its price objective by 18% to CHF70, signaling concerns over waning demand for peripherals as price hikes permeate the wider hardware market. The stock slid 5.2% in premarket trading following the downgrade.
2. EPS and Revenue Forecast Revisions
BofA cut fiscal 2027 through fiscal 2029 EPS estimates by 6.3% to 10.7%, forecasting EPS of $5.33 in FY27, $5.23 in FY28 and $5.54 in FY29, placing its projections 9.4% to 20.5% below consensus. On the top line, revenue is modeled at $4.8 billion for FY27, dipping to $4.6 billion in FY28 before a modest recovery to $4.8 billion in FY29, trailing street estimates by up to 13.3%.
3. Market Outlook and Margin Pressure
The revision reflects projections of an 8% global PC volume contraction in calendar 2026 followed by modest growth in subsequent years, which could weigh further on sales of complementary accessories. Analysts also warned that consumer shifts toward lower-priced devices could compress gross margins into the high-30% to low-40% range from current above-43% levels.
