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According to Credit Suisse, Logitech has little hope of growth this year. Analyst Serge Rotzer downgraded Logitech from “better” to “neutral”. “With the prospects for growth in the next six months in a challenging interest rate environment, we do not see any short-term catalysts and believe that the holiday season (Q3) may be the first event to change the outlook. “, he wrote in a client note on Monday. Rotzer noted that Logitech’s margins could improve due to reduced pricing pressure, component supply and shipping congestion, and the opening of China. “However, in our view, this is not enough to boost the share price as we need to see sales growth to justify higher multiples,” the analyst said. Credit Suisse forecasts Logitech’s revenue will decline by a CAGR of 10.5% in fiscal 2023-24. The firm notes that two major structural drivers of growth Logitech, gaming and video collaboration are currently struggling.Logitech only offered a forecast for the first half of FY 2024, withholding a forecast for the full year. “As the forecast covers only the first six months of FY24 with an 18% decline in up to 22%, and low transparency does not allow predicting the forecast for the whole year, uncertainty remains high,” Rotzer wrote. AI fell 15.5% in 2023 and has fallen 25% over the past 12 months. — Michael Bloom of CNBC
Credit: www.cnbc.com /
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