LOGN: Future Outlook Will Balance Share Buybacks With New Product Expansion

Analysts have modestly raised their price target on Logitech International, citing slightly faster expected revenue growth, a small improvement in profit margins, and only a marginal change in the assumed future price to earnings multiple. This has resulted in an updated fair value estimate that now stands just under 100 dollars per share.

What's in the News

• Management reaffirmed a disciplined capital allocation framework, prioritizing organic growth and dividends while pursuing only small, strategic tuck in acquisitions. This strategy is supported by a newly hired head of M&A and a three year, 2 billion dollar share buyback program (company commentary).
• Logitech is opening its first Logitech Experience Store pop up in San Francisco’s Union Square, showcasing MX Master 4 and other flagship products in an immersive, hands on environment through December 24 (company announcement).
• The company issued guidance for the third quarter of fiscal 2026, projecting sales between 1,375 million dollars and 1,415 million dollars. This implies 3 percent to 6 percent year over year growth in US dollars and 1 percent to 4 percent in constant currency (company guidance).
• Logitech expanded its hardware lineup with Muse, a precision digital pencil for Apple Vision Pro featuring six degrees of freedom tracking, low latency, and haptic feedback for professional spatial computing workflows (product announcement).
• New peripherals, including the MX Master 4 mouse, Signature Slim Solar+ K980 keyboards, and Zone Wireless 2 and Zone Wired 2 headsets, were introduced to enhance productivity, reduce distractions in hybrid work settings, and advance Logitech’s sustainability goals through extensive recycled materials and long life designs (product announcements).

Valuation Changes

• Fair Value Estimate remains at approximately 100 dollars per share, indicating no meaningful revision to the intrinsic value assessment.
• Discount Rate has risen slightly from about 5.00 percent to 5.00 percent, reflecting a marginally higher assumed cost of capital.
• Revenue Growth has risen slightly from roughly 6.07 percent to 6.12 percent, signaling a modestly more optimistic top line outlook.
• Net Profit Margin has risen slightly from about 14.22 percent to 14.28 percent, driven by incremental operating efficiency assumptions.
• Future P/E has fallen slightly from around 25.22 times to 25.09 times, implying a marginally lower valuation multiple applied to future earnings.