(News Bulletin 247) – BofA announced on Thursday that it had reduced its target price on the Logitech share, reduced from 65 to 57 Swiss francs due to the “limited” visibility currently available to the manufacturer of digital accessories.
In a research note, the intermediary acknowledges that the group’s last day of investors was ‘positive’ from a long-term perspective, highlighting both the company’s major growth drivers as well as its strategy in its various markets.
While he concedes that visibility remains particularly limited, with no prospect of recovery even according to the company’s management team, the analyst points out that Logitech will begin to benefit from a more favorable basis for comparison in terms of its costs and currency effects, which could tend to support its profit margin.
At the same time, the stock’s valuation remains attractive, he adds, with a yield on free cash flow which currently stands at 7% against a 10-year average which is more like 4.5%, which led him to renew his advice to buy the share.
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