Opinions
Shane Obata
Logitech International SA
LOGI-Q
HOLD
Aug 11, 2023
$67.380
Stock price when the opinion was issued
electrical
electronic
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BUY ON WEAKNESS
Allan Tong’s Discover Picks LOGI shot up as high as $140.17 and has bounced back to surpass even its 2020 peak. On the Nasdaq, Logitech trades above $120. (The Swiss listing performs as well on a year-to-date basis.) And yet it still trades a lower PE of 22.4x compared to its tech peers, such as Hewlett Packard‘s 29.8x or pure gamer, Activision Blizzard at 31.8x. More kudos for beating its last four quarters, hands down. So, for a work-at home stock, Logitech looks far from dead. Read 3 Promising Euro Stocks to Buy for our full analysis.
electrical
electronic
TOP PICK
Despite revenue and profit growth is there, it is down 20% since its highs. The reason is due to the covid variant lockdown. People are not out in the gaming industry doing competition and in cinema. Video games are the future. Trades at 13x earnings, which is reasonable. Dividends are rising 10% a year. Free cashflow yield is 10%. Cost of capital is 8% versus return of capital at 46%. Could raise dividends and spend on innovation. Cheap here.
electrical
electronic
Excellent brand name recognition.
Stock has performed well recently.
Recovery in PC market will help business.
Trending towards "return to office" which is good for hardware suppliers.