Logitech: stock falls on broker downgrade
(CercleFinance.com) - The share of Swiss computer peripherals and accessory maker Logitech is down 1% in Zurich after lunch, with broker Wedbush having downgraded the share from "outperform" to "neutral," while adjusting its corresponding target price from 63 dollars to 65 dollars.
Although it acknowledges that "Logitech's global portfolio combines mature businesses with compelling growth stories," the broker only sees a "limited multiple expansion ahead".
Wedbush says that its new target price is based on a multiple of 25x its estimated 2020 EPS, a ratio that is at the upper limit of Logitech's historic range of 12.6x to 25x (over five years).
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Although it acknowledges that "Logitech's global portfolio combines mature businesses with compelling growth stories," the broker only sees a "limited multiple expansion ahead".
Wedbush says that its new target price is based on a multiple of 25x its estimated 2020 EPS, a ratio that is at the upper limit of Logitech's historic range of 12.6x to 25x (over five years).
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.