Logitech: stock falls on UBS' competition concerns

(CercleFinance.com) - Logitech shares are down over 3% on Wednesday in Zurich, with UBS analysts downgrading their rating on the stock, concerned about the group's visibility in the context of intensifying competition.


Analysts say that low visibility in (near-term) sales growth trends is concerning, considering low barriers to entry and fierce competition in the market.

The broker is particularly concerned about competition from tech giants such as Apple and Meta, which are currently developing new tools for virtual and augmented reality.

This increased competition should also penalise Logitech in categories such as connected speakers and wireless headphones, the broker adds.

In this light, UBS has downgraded the stock from "buy" to "neutral", reducing its target price for it from 66 Swiss francs to 57 Swiss francs.


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