Logitech: BofA cuts target price
(CercleFinance.com) - BofA on Thursday reduced its target price for Logitech from 65 Swiss francs to 57 Swiss francs because of the "limited" visibility currently available to the digital accessories maker.
In its comments, the broker acknowledged that the group's last CMD was "positive" from a long-term perspective, highlighting both the company's key growth drivers and its strategy in its various markets.
While it concedes that visibility remains particularly limited, with no prospect of a turnaround - even according to company management - the analyst points out that Logitech will begin to benefit from a more favourable comparison basis in terms of costs and FX, which could support its profit margin.
Meanwhile, the stock's valuation remains attractive, it adds, with free cash flow yields currently standing at 7% compared to a 10-year average of 4.5%, which results in it renewing its buy rating on the stock.
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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.
In its comments, the broker acknowledged that the group's last CMD was "positive" from a long-term perspective, highlighting both the company's key growth drivers and its strategy in its various markets.
While it concedes that visibility remains particularly limited, with no prospect of a turnaround - even according to company management - the analyst points out that Logitech will begin to benefit from a more favourable comparison basis in terms of costs and FX, which could support its profit margin.
Meanwhile, the stock's valuation remains attractive, it adds, with free cash flow yields currently standing at 7% compared to a 10-year average of 4.5%, which results in it renewing its buy rating on the stock.
Copyright (c) 2023 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.