Mon, Apr 15th 2024
Morgan Stanley analyst adjusts his stance on Logitech’s stock, issuing a ‘Sell’ rating with a reduced price target of $75.
Today, Morgan Stanley’s Erik Woodring revised his perspective on Logitech (LOGI), moving his recommendation to ‘Sell’ and setting a new price target at $75. This adjustment reflects the largest deviation in valuation among analysts covering the stock claims market business insider.
Early Monday the technology firm based in Lausanne faced signifcant drops in share value. Some are claiming this drop can be attributed to the analysis coming from the bank. The firm with over 7000 employees globally is feeling the burn, regardless of the cause.
The analysis stance stems from the idea that Logitech’s current stock price overly anticipates revenue increases, with the market projecting an 8-10% growth rate, much higher than the what they estimate is 3% annual growth through to 2027. This projection starkly contrasts with the more optimistic general market consensus of 5% growth.
Over the previous year, Logitech’s price-to-earnings ratio has escalated to a three-year high, a surge driven by expectations of a revenue growth rebound.
This assessment gains importance as it preludes the upcoming earnings announcement scheduled for April 30th.
The analyst who is suggesting an over optimistic growth rate has a track record of 51.75% success and an average return of -1.3%. How much this news has to do with the drop in stock price is purely speculation. The coming earnings reports we will cover will shed more light on the situation.
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