Logitech (NASDAQ:LOGI) makes some of the best computer peripherals around. I’m typing on one right now. And Logitech stock is up at the time of writing, not so much because there are plenty of other people using Logitech products, but because Morgan Stanley just gave the stock an upgrade ahead of its earnings report.
The upgrade came from Morgan Stanley’s Erik Woodring, who hiked the stock from “underweight” to “equal-weight” while raising the price target from $40 to $56. Woodring suggested there would be a “more balanced catalyst” path for the second half of the year for Logitech, possibly extending all the way into 2024. Woodring noted that there were, of course, still “…risks to the forward outlook…” like consumer and enterprise spending. However, he also noted that these concerns are likely already baked in.
Logitech has also been rapidly working to diversify its product line, which should help insulate it from some of those “risks to the forward outlook.” Logitech brought out Project Ghost just a couple months ago and put a functioning version together only recently to demonstrate how it can make video calling more effective. All it really took was some specialized seating, a little decoration, and Logitech’s Rally Plus video system. Further, Logitech and Amazon (NASDAQ:AMZN) also dropped prices on Logitech’s Brio webcam line, sending them down to under $60 for the first time.
Analysts are a bit split on Logitech’s ability to address the forward outlook, however. With four Buy ratings and five Holds, Logitech stock is currently classified as a Moderate Buy. Furthermore, its price target of $59.71 gives it a slight 2.93% downside risk.
