Logitech International SA
LOGN: XSWX (CHE)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CHF 79.00 | Ryb | Jrbppfm |
Logitech: Initiating Coverage With No Moat and $55 Fair Value Estimate
We’re initiating coverage of Logitech with a no-moat rating and $55 (CHF 50) fair value estimate. Our fair value estimate implies a 2023 enterprise value/EBITDA multiple of 16.5 times and a P/E ratio of 22 times. Our estimates are broadly in line with FactSet consensus, but we think the shares currently look overvalued. We surmise the market is betting that high margins in the video collaboration segment are more durable than our expectations.