The stock, also hit by worries about renewed trade tensions between the US and Europe, was down 4.9% at last check, falling back to its lowest level since July 2024.

In a report on the technology hardware sector, Morgan Stanley noted that over 80% of the group's revenue depends on sales of laptops and gaming PCs, a segment on which the broker adopts a more cautious stance, with unit volumes expected to fall 5% in 2026 from the previous year.

Against this backdrop, the broker expects Logitech's revenue to decline in 2027, even though the consensus forecasts 4% growth.

The broker also argues that when Logitech is in a phase of declining revenue, the market generally assigns the stock a lower valuation than during periods of growth, leading it to believe that a lower valuation multiple (about 16.5x earnings) is now more realistic.

Saying that the upside potential does not compensate for the risk, MS has downgraded the stock to "underweight” from "equal-weight”, while lowering its  target price to $89 (from $107).

With Logitech set to publish its quarterly results next week, on Tuesday, January 27, Deutsche Bank analysts, meanwhile, lowered their target pfirce for the stock to 80 Swiss francs (from 90 Swiss francs), maintaining their "hold” recommendation on it.