Maxim Group analyst Nehal Chokshi initiated coverage with a Sell rating on Logitech (LOGI) today and set a price target of $31. The company’s shares closed on Friday at $38.05.
Chokshi noted:
“CEO Bracken Darrell has changed the culture of Logitech for the better – better acquisitions, better engineering, and better morale. Based on our analysis, only 33% of revenue is tied to secular growth markets, i.e. increasing installed bases, with the majority tied to flattish-to-declining installed bases. Initiating coverage with a Sell rating and $31 price target due to valuation and our view that the FY20E EPS target of $2.00 is at significant risk.”
According to TipRanks.com, Chokshi is a 4-star analyst with an average return of 10.4% and a 57.7% success rate. Chokshi covers the Consumer Goods sector, focusing on stocks such as Hewlett Packard Enterprise, Super Micro Computer, and Palo Alto Networks.
Logitech has an analyst consensus of Strong Buy, with a price target consensus of $53.
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Based on Logitech’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $64.18 million. In comparison, last year the company had a net profit of $56.36 million.
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Logitech International SA is a holding company, which engages in designing, manufacturing and marketing products that help connect people to digital and cloud experiences. It offers headsets, speakers, mice, keyboards, and webcams.
