Logitech International's (LOGI) product updates across categories, effective inventory management and a revitalized Chinese market, along with a rebound in video collaboration, build optimism for the company's upcoming fiscal Q3 results and forward guidance, Wedbush Securities said in a Tuesday note.

The brokerage estimated fiscal Q3 earnings per share of $1.75 on revenue of $1.42 billion, compared to consensus estimates of $1.73 and $1.40 billion.

The investment firm said Logitech withdrew its fiscal 2026 guidance amid uncertainty over tariffs but year-to-date performance, fiscal Q3 guidance and seasonality suggest the full year could outperform initial expectations.

Wedbush said its earnings forecast assumes that fiscal Q3 gross margin will fall by 20 basis points year-on-year and 80 basis points quarter-over-quarter to 43% due to more promotional pressure.

Logitech holds $9 per share in cash and has no debt, positioning the company to accelerate growth via small acquisitions, facilitate share repurchases, and expand its dividend, according to the note.

Logitech is scheduled to report its fiscal Q3 results on Jan. 27.

Wedbush reiterated its outperform rating on Logitech with a $135 price target.

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