Wedbush has adjusted its price target for Logitech (LOGI, Financial), reducing it from $110 to $100, while maintaining an Outperform rating on the stock. The firm commends Logitech's transparency regarding the anticipated impact of tariffs on their margins. Due to the ambiguity surrounding the scope and scale of tariffs by July, Logitech decided to retract its FY26 outlook. However, the company has outlined detailed guidance for the first quarter, addressing the expected effects of the tariffs while also highlighting its strategy to mitigate these through selective price hikes across its product range.
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 $84.98 with a high estimate of $113.00 and a low estimate of $70.00. The average target implies an upside of 8.66% from the current price of $78.21. 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 $72.13, suggesting a downside of 7.77% from the current price of $78.21. 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.
