Citi downgrades Logitech on ‘sudden and unexpected’ CEO departure

Citi analyst Asiya Merchant downgraded Logitech to Neutral from Buy with a price target of $70, down from $73, following the “unexpected” departure of CEO Bracken Darrell. Logitech did not actively reaffirm guidance, and while the company cited no differences in strategy as a reason for the “sudden and unexpected” departure, this, combined with the recent installment of a new CFO, may cause investors to question management’s ability to execute the current growth strategy, the analyst tells investors in a research note. The firm believes the management changes create uncertainty on when the Logitech can revert back to achieving the growth targets it has set out in its long term model. It downgrades the shares pending better clarity on how and when the company can achieve its long term growth targets.