Logitech to Gain Gaming Share Despite Tough Comparisons: Wedbush

Logitech is positioned to capture a “sizeable share of burgeoning growth” in PC peripherals and videoconferencing markets, still riding the COVID-19 hybrid work trend, Wedbush analyst Michael Pachter wrote investors Thursday. Though the company still has to “trudge through the mud of tough comparisons and a difficult supply chain environment,” it will also benefit from favorable gaming trends, he said. Pachter referenced Logitech’s “strong M&A track record,” and a “high likelihood of acquisitions” in the next year. The peripherals maker has managed well through very difficult comparisons, managing to maintain or even grow its heightened pandemic-era revenue streams in some categories, he said. Lower consumer spending in Europe due to the Russia-Ukraine war plus inflationary pressure could delay Logitech’s upgrade cycle on several peripherals, said the analyst, but the hybrid shift is a buffer that should return the company to growth in coming quarters. Logitech will report Q4 fiscal '22 earnings Monday at 9 p.m. EDT. Wedbush expects Q4 revenue of $1.28 billion at the high end of guidance.