Logitech, Garmin merger as Barclays begins distribution of consumer tech names (NASDAQ:LOGI) | So Good News
Garmin (NYSE: GRMNand Logitech International (NASDAQ:LOGI) saw little change on Wednesday, when Barclays began coverage of both companies, with the investment firm calling Logitech an “underappreciated player in the space.”
Logitech: Engineer Tim Long founded Logitech (LOGI) with obesity, and put it in the category of “leaping frog”, which can accelerate and increase the need to have new product categories and easy online results.
“Logitech has successfully transitioned from a single brand with a focus on enterprise PCs to a multi-brand and multi-brand company under brand CEO Bracken Darrell,” Long wrote to clients, adding that the company is a market leader. in two out of three of its 30 product categories.
Logitech ( LOGI ) should continue to benefit as the video and gaming industry continues to grow and the company’s main Creativity & Production division is “highly profitable.”
The analyst also noted that the wireless gaming and video gaming segments have significant growth potential and that Logitech ( LOGI ) has “substantial” experience and recent acquisitions as well as a strong and consistent cash-back program, the stock is an attractive prospect in these sectors.
Garmin: Garmin (GRMN), along with Apple (AAPL), may be among the “leading” companies that benefited from COVID-19, perhaps only seeing a temporary increase in sales and demand, while levels are returning. to the pre-COVID level.
He previously noted that Garmin (GRMN) is a consumer-focused company and while its sales are high and margins are high due to its continued investment in research and development in niche markets, competition is growing, especially from Apple’s (AAPL) Watch Ultra.
“For Garmin, the initial evaluation shows the high demand for the Apple Watch Ultra, which will be a major threat to GRMN’s Fenix watch series in the short term as the Apple Watch Ultra scales,” said Long.
The analyst added that “moderate buying and a shift in inventory/buying” could help the bull’s case, but it’s unlikely to happen anytime soon.
Garmin ( GRMN ) reported third-quarter results late last month and lowered its full-year guidance below analysts’ expectations.