Logitech International S.A. (NASDAQ: LOGI) has caught the attention of UBS, which recently upgraded the stock from Neutral to Buy. This shift in sentiment reflects growing confidence in Logitech’s pricing power, strategic supply chain moves, and tailwinds from the booming gaming market.
- Logitech is showing strong pricing discipline, helping maintain healthy margins despite macroeconomic headwinds.
- The company is deeply embedded in the gaming ecosystem, with nearly 30% of its sales tied to gaming products. As Gen Alpha becomes increasingly influential, this positions Logitech for long-term relevance and demand.
- A major transformation is underway in Logitech’s manufacturing operations. By reducing reliance on China—from 40% down to an expected 10% by the end of 2025—the company is not only mitigating tariff risks but also enhancing supply chain flexibility.
🔹 Financially, Logitech is on solid ground. With approximately $1.5 billion in net cash and a $2 billion share buyback program in motion, the company is demonstrating clear commitment to shareholder value.
🔹 On the valuation front, the stock is trading at about 15x projected FY27 earnings (ex-cash), which is below its historical average multiple of 17–19x—offering a compelling entry point for investors.
📈 Dividend Fundamentals:
- Forward yield: 1.7%
- Annual dividend: $1.401 per share
- Dividend payout ratio: 29.7%
- Dividend growth streak: 12 consecutive years
Logitech continues to strike a smart balance between rewarding shareholders and investing in future growth. Its growing dividend, strategic pivot away from China, and position in gaming make it a standout in today’s tech landscape.