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Research Alert: CFRA Lowers Opinion On Shares Of Logitech International S.a. To Sell From Hold

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our price target by $10 to $84, applying a P/E of 15x to our FY 27 (Mar.) EPS estimate, below LOGI's three-year average (~24x) given elevated macro headwinds. We lower our FY 27 EPS estimate by $0.07 to $5.58 and initiate a FY 28 view at $5.85. While Q4's results (sales +3% ex-FX, non-GAAP operating margin +210 bps Y/Y) demonstrated resilience in a volatile macro environment, we think management is downplaying the negative impacts that will accompany memory supply issues in FY 27, which should increase costs and prices for the fast-growing Video Collaboration product category (+8% ex-FX in Q4), slowing overall company growth. We also expect peripherals to hold some correlation to PC unit volumes despite management's optimistic assertion otherwise, resulting in broad pressure across multiple products. Growth in APAC (28% of FY 26 sales, +15% ex-FX) has been a bright spot, but we worry that elevated marketing spend is supporting results more than product leadership and innovation.

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