Logitech Earnings: Solid Start on Improving Demand; Shares Overvalued
No-moat Logitech reported solid first-quarter results, with revenue and non-GAAP operating income beating FactSet consensus. Fiscal 2025 guidance was raised modestly to revenue of $4.34 billion-$4.43 billion and non-GAAP operating income to $0.7 billion-$0.73 billion. Despite the consensus beat, shares fell around 3% on the day, which we think is more related to the broader selloff in technology stocks. We are raising our fair value estimate to $67 (CHF 60) after lifting our near-term estimates. At current levels, the shares still look overvalued.