(News Bulletin 247) – The Logitech title suffered a drop of more than 3% on the Zurich Stock Exchange on Wednesday, while UBS analysts downgraded their advice on the value, worried about the group’s visibility in a context of intensification of competition.
“We increasingly lack visibility on the near-term sales growth trajectory, a key element of the case given the low barriers to entry that characterize the market and the fierce competition that prevails there,” explains UBS.
The design office says it is particularly concerned about competition from major technology groups such as Apple or Meta, which are currently developing new tools in virtual reality and augmented reality.
This increased competition should also penalize Logitech in categories such as connected speakers and wireless headphones, adds the analyst.
In this context, UBS explains that it prefers to reduce its recommendation on the title from ‘buy’ to ‘neutral’, with a price target reduced from 66 to 57 Swiss francs.
The title currently yields 3.7% on the Zurich Stock Exchange.
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