Logitech Eyes Breakout Before Earnings—Citigroup Sees 30% Upside
Logitech International S.A. (NASDAQ: LOGI) stock is up 33% this year. That’s more than double the performance of the S&P 500, which is up about 13% year-to-date and the NASDAQ, which is up about 22.5% in 2025.
The company is part of the technology sector but is not an artificial intelligence (AI) play. For the unfamiliar, Logitech has a product portfolio of computer peripherals and video collaboration tools, including mice, keyboards, webcams, headsets, speakers, and remote controls.
Logitech reports earnings on Oct. 28, and the earnings report may come in better than expected. Citigroup recently upgraded LOGI stock from Neutral to Buy with a price target of $130, a 30% increase from the stock’s current price.
Innovation Is Driving Renewed Interest in Logitech
Logitech may sound like a boring business, particularly when compared to some of the names that have shown stock price growth more than double that of LOGI stock. However, Logitech is known for innovation. That innovation has been on display in October in two separate announcements.
First, TIME named the company’s Logitech Spot a Best Invention of 2025. Spot is a wireless environmental office sensor that detects and provides feedback on how many rooms are occupied and automatically books and releases rooms.
The device can also detect environmental conditions such as air quality and energy usage. It's part of the company’s mission to help companies measure unseen factors that can reduce employee performance and increase real estate costs.
Logitech also launched Muse, a digital pencil for Apple Vision Pro. The device only started selling on Oct. 22, so investors won’t know the impact it will have on revenue and earnings for another quarter or two. However, they should expect to hear the company’s expectations when they report.
Why Is Citigroup Bullish on LOGI Stock?
New, innovative products are great, but there are more fundamental reasons for Citigroup to be bullish on Logitech.
The firm sees an improving environment for the company’s computer accessories.
That includes increased efforts to bring workers back to the office. But when they are at home, Citigroup notes that many people are still attached to their screens; they’re only doing so for gaming purposes.
The bullish outlook is bolstered by recent PC shipment data that was bullish and an uptick in video conference equipment orders.
Logitech products will be ancillary to these sales and will likely be reflected in the coming quarters.
Deft Management of Tariff Concerns Supports Margins
Although Logitech designs its products in Switzerland and the United States, most of its manufacturing is outsourced to China and other Southeast Asian countries, which has placed it at the center of tariff concerns.
However, as it did in 2018 and 2019, the company has managed to mitigate the impact of those tariffs with strategic price increases and its ability to diversify its global manufacturing footprint.
In its most recent quarter, Logitech reported reducing the share of its products originating in China from 40% to 10%. It’s also important to note that about two-thirds of the company’s sales are outside the United States.
That said, valuation may be a slight concern. LOGI stock is trading at around 26x forward earnings, a premium to its historical averages. For that premium, investors would like to see more earnings growth than the 3% that’s currently forecast. That’s something to watch for when the company reports earnings.
LOGI Stock Is Consolidating Before Earnings
Logitech stock is trading above its 50-day simple moving average (SMA) and has been in a sustained uptrend since the April 2 “Liberation Day” tariff announcement. That said, the stock is now consolidating its gains around the recent high made in September.
This could be a healthy pause for investors before the company’s earnings report. The 50-day SMA has served as firm support over the past few months. The momentum should be positive as long as the stock stays above that level, with further upside possible.
The risk to the stock’s momentum is if the economy slows down more than expected, which could change market sentiment. However, right now the bias is to the upside, and with analysts like Citigroup setting bullish targets, LOGI stock is setting up as an opportunistic Buy into 2026.
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