Logitech International Offers 'A Strong Track Record," BofA Says

Logitech International SA LOGI is likely to generate a compounded annual growth rate of 8% in revenues and 10% in EBITDA between fiscal 2022 and 2026, according to BofA Securities.

The Logitech International Analyst: Adam Angelov initiated coverage of Logitech International with a Buy rating and a price target of $107.

The Logitech International Thesis: The company has a “strong track record of execution, highest ROIC in our coverage at 34% and market share gains which we expect to continue,” Angelov said in the initiation note.

Logitech International also has exposure to the “secular megatrend (social media, gaming, video calling etc.)” and a path towards “higher ASP products,” he added.

“Given largely unchanged consensus revenue/EBITDA/EPS, we think that buy-side expectations could be below sell-side. This would suggest that in-line results/confirmation of company guidance could be viewed as a positive catalyst for the stock,” the analyst wrote.

LOGI Price Action: Shares of Logitech International had risen by 6.68% to $76.65 at the time of publication Thursday.

Photo: Lizzo and Logitech "Defy Logic" in brand campaign, courtesy Logitech