Logitech Likely to Continue Gaining on Hybrid Work, Gaming: Wedbush
Wedbush maintained a “neutral” rating on Logitech in a Wednesday investor note, expecting “solid” results for the company when it reports Q1 FY 2022 results Monday, after an “astronomical” FY 2021. “Logitech was ideally positioned to benefit from global COVID-19…
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quarantines last year, which drove rapid expansion in already growing categories such as video communication, esports/gaming, and streaming/podcasting,” said analyst Michael Pachter. Wedbush expects Logitech to maintain single-digit revenue growth over the next three years because it will “likely retain” most of its larger user base. Estimates assume a corporate push to equip offices with videoconferencing equipment to enable hybrid work locations and reduced corporate travel; continued gaming trends supported by esports and community with friends; continued high demand for peripherals and software for streaming and podcasting; and upgrades on a “typical cycle” by Logitech’s “significantly expanded” computer peripherals user base. Wedbush expects a 41% increase in Logitech's Q1 revenue to $1.12 billion, driven by videoconferencing and gaming. Its Q1 earnings call is Tuesday.