Logitech (LOGI) shares are coming under pressure this morning after Goldman Sachs analyst Simon Schafer this morning cut his rating on the stock to Sell from Neutral, adding the stock to the firm’s Conviction Sell List.
“Recent datapoints suggest a slowdown in consumer centric end-markets (TV, PCs, Notebooks) that have historically had a high correlation with sales of Logitech�s products, raising risks to consensus estimates,” he writes in a research note. “Importantly, our checks suggest accelerating cannibalization of [notebooks] by
tablets (principally by Apple�s iPad thus far), posing additional risks for PC peripheral vendors given little growth exposure to this new product category at this stage.”
He adds that improvement in touch-panel virtual keyboards and embedded Web cams are likely to slow sales of Logitech’s peripherals at retail. Schafer cut his price target on the stock to 14 Swiss francs, from 16, and trimmed his EPS estimates for the company.
LOGI is down 54 cents, or 3.3%, to $15.80.
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