LogMeIn Has Less Exposure To FX Movements Due To Relatively Low Percentage Of International Revenue
Analysts at JP Morgan reiterate their "overweight" rating on LogMeIn Inc (NASDAQ: LOGM). The target price for LOGM is set to $27.
According to JP Morgan, “Approximately 85% of LogMeIn’s revenue comes from small to medium-sized businesses (SMBs)… In offering free remote access services along with its premium offerings, LogMeIn has been highly successful in establishing a large user community of currently more than 28 million registered users, the majority of whom are free users. The company, in turn, incurs infrastructure-related costs associated with hosting a user community that increase as more users register for LogMeIn’s services.”
“LogMeIn’s competition includes the likes of CSCO, CTXS, MSFT, and SYMC, which may employ their vast resources to strengthen their competitive standing, which could be detrimental to LogMeIn’s market position,” the analysts mention.
JP Morgan adds, “We have not revised our estimates for LogMeIn as we believe that the impact of FX movements on the company is minimal given that it has a relatively low percentage of international revenue, and most of this is denominated in U.S. dollars.”
