Logitech price target raised to $55 from $50 at Loop Capital

Loop Capital analyst Ananda Baruah raised the firm’s price target on Logitech to $55 from $50 but keeps a Hold rating on the shares after its Q3 results. The company is now experiencing the "equal opportunity" of ongoing declines in consumer spending as well as the onset of enterprise spending declines, and its revenue trends should be "sub-seasonal through at least the June-end quarter", the analyst tells investors in a research note, adding that its Video Conferencing business declined 16% sequentially for the first time after delivering consecutive quarters of growth. Loop Capital states that Logitech has been trading at an earnings multiple of 20- to 25-times from 15- to 20-times recently, and while this is warranted by the company’s organic revenue growth profile, it gives the management less wiggle room for executional error.