Bank of America has downgraded Logitech International (LOGI, Financial), citing dimming growth prospects and advising investors to look elsewhere. Analyst Didier Scemama lowered the rating for the computer products company from neutral to underperform, also reducing growth expectations for several product divisions.
The firm now anticipates Logitech's overall revenue to grow by only 3.1% in the fiscal year 2026, down from an expected 6.7% growth rate for the current fiscal year. Scemama mentioned that although revenue growth forecasts for the high-margin video collaboration segment have been raised for 2025 to 2027, reflecting increased corporate spending and a solid product lineup, the outlook for personal computers, tablets, and gaming peripherals has become more cautious, leading to a comprehensive downgrade in expectations.
Scemama also highlighted potential trade tax increases as a factor that could pressure Logitech's growth. Logitech is known for producing computer accessories such as mice, keyboards, and webcams. The company's stock fell over 4% recently.
