Why Logitech Stock Dropped 6% Today
Logitech International (NASDAQ: LOGI) stock was trading down by 6% as of 12:20 p.m. ET Monday after investment bank Morgan Stanley downgraded the computer peripherals maker to underweight (i.e., sell) and predicted the stock would fall to $75 over the next 12 months.
That's now the lowest price target assigned to Logitech by any bank on Wall Street, according to StreetInsider.com.
In Monday's note, Morgan Stanley analyst Erik Woodring said he had conducted a "deep dive into LOGI's biz" and concluded the company can only grow sales at about 3% annually over the next three years. Investors, however, are valuing the stock as if they think Logitech will grow by as much as 10% annually over that period.
Source Fool.com
