Logitech International (NASDAQ:LOGI) suffered a blow, with shares sliding about 11% after Citi Research, led by Asiya Merchant, switched its stance from Buy to Neutral. This move followed the unexpected departure of CEO Bracken Darrell. Citi has also trimmed the price target on Logitech’s shares from $73 to $70.
Citi analysts have expressed concern over the company’s direction, as Logitech did not reaffirm guidance. Despite the company maintaining that no strategic differences sparked Darrell’s departure, the sudden CEO change and the recent appointment of a new CFO are raising doubts about management’s capacity to deliver on the current growth plan. Analysts argue that these significant management shifts cast a cloud of uncertainty over when Logitech will be able to hit its long-term growth targets.
Overall, analysts have a Moderate Buy consensus rating on LOGI stock based on four Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $65.39 per share implies 15.9% upside potential.
