LOGI

Logitech International S.A.

TMT, Consumer


Presented:10/06/2020
Price:$75.83
Cap:$12.77B
Current Price:$87.41
Cap:$13.38B

Presented

Date10/06/2020
Price$75.83
Market Cap$12.77B
Ent Value$10.33B
P/E Ratio26.61x
Book Value$9.31
Div Yield1.15%
Shares O/S168.42M
Ave Daily Vol580,406
Short Int6.31%

Current

Price$87.41
Market Cap$13.38B
Logitech International SA is a holding company, which engages in design, manufacture, and marketing of peripherals for PCs, tablets and other digital platforms. It offers headsets, speakers, mice, keyboards, and webcams. The firm's brand include Logitech, Jaybird, Ultimate Ears, Logitech G, ASTRO Gaming, and Blue Microphones. The company was founded by Daniel Borel, Pierluigi Zappacosta, and Giacamo Marini on October 2, 1981 and is headquartered in Lausanne, Switzerland.

Publicly traded companies mentioned herein: Alphabet Inc (GOOGL), Amazon Inc (AMZN), Cisco Systems Inc (CSCO), Facebook Inc (FB), Logitech International SA (LOGI), Plantronics Inc (PLT), Turtle Beach Corp (HEAR), Zoom Video Communications Inc (ZM)

Highlights

The presenter is short shares of Logitech International SA (LOGI), the global supplier of PC peripherals (mice, keyboards, monitors, etc.), gaming accessories, and video collaboration solutions. He believes video collaboration, the business segment that is supposed to drive LOGI’s incremental revenue, has become commoditized with the introduction of similar products from AMZN, FB, GOOGL, and ZM. Additionally, as the work-from-home (WFH) tailwind fades, LOGI will face increased fixed costs on additional capacity they’ve built out to meet incremental demand. Based on these two factors, he believes that in 2021, LOGI will generate $2.00 in earnings vs. the Street’s $2.60. Applying a 15x - 20x multiple to his $2.00 in EPS, the presenter believes the stock should trade between $35/share - $45/share, it currently trades at ~$69/share. 

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