Channel checks point to Logitech beating ‘cautious’ Q2 guidance, says UBS

Backed by channel checks, UBS forecasts Logitech to beat its near-term targets. The B2C channel seems to stabilize/bottom out near-term sequentially while the B2B business remains lackluster, the firm adds. At the same time, UBS believes gross margins should be supported by normalizing promotions, declining freight costs and FX transaction benefits. Overall, channel checks with industry experts and supply chain peer statements lead the firm to believe Logitech will beat its cautious Q2 guidance and increase its FY24 targets end of October at the Q2 results day. UBS has a Sell rating on the shares with a price target of CHF 47.