UBS Upgrades Logitech, Citing Growth Potential from Gen Alpha’s Gaming Habits

UBS has upgraded its outlook on Logitech, the computer peripherals company, citing long-term potential driven by growing gaming engagement among Generation Alpha, CNBC reports.

The investment bank raised its rating on Logitech’s Switzerland-listed shares from neutral to buy and set a price target of 80 Swiss francs—representing a potential upside of about 26%. A similar increase would lift Logitech’s US-listed shares to approximately $96.50.

Logitech’s stock has underperformed in 2025, falling 7% compared to a 4% decline in the S&P 500. However, UBS analyst Joern Iffert believes the current share price already reflects market uncertainty and sees room for recovery.

“The share price has come down already, reflecting investor uncertainties, and we look through some challenging quarters,” Iffert wrote.

He expects Logitech’s margins and cash flows to remain strong, supported by its pricing strength in key product categories and improved regional sourcing strategies, particularly efforts to reduce reliance on Chinese manufacturing.

A key factor in UBS’s positive outlook is the rising popularity of video games among Generation Alpha—those born between 2010 and 2024. According to UBS, approximately 94% of this group plays video games, a higher participation rate than previous generations. Iffert suggests that this trend is increasingly influencing consumer behavior, with many Gen Alpha consumers more likely to purchase products endorsed by influencers or seen in gaming environments.

“Consumer brands increasingly use gaming channels to connect to end consumers,” Iffert noted. “Gamers are more likely to buy brands that they have seen in a game, with 47% of Gen Alpha stating that they bought a product or service recommended by their favorite streamer.”

UBS also cited Logitech’s internal restructuring aimed at enhancing its business-to-business (B2B) operations, which the bank believes could contribute positively to future performance.

Despite UBS’s optimism, broader analyst sentiment on Logitech remains cautious. According to LSEG data, of the eight analysts covering the stock, six rate it as a hold, while two have buy ratings. Following the UBS upgrade, Logitech’s US-listed shares rose over 1% in premarket trading.