Citi downgrades Logitech stock as CEO Darrell resigns

Bracken Darrell stepped down as the Chief Executive of Logitech International SA (NASDAQ: LOGI) on Wednesday. Shares are down nearly 15%.

Guy Gecht named the interim CEO

Logitech has already started looking for a successor. Guy Gecht – a board member will lead the company in the meantime, as per the press release.

Darrell, who resigned to “pursue another opportunity”, will remain with the Swiss manufacturer of computer peripherals for a while to ensure a seamless transition.

The manufacturer of computer peripherals has already started looking for a successor. Guy Gecht – its board member will serve as the Interim CEO for the time being.

Logitech expects an 18% to 22% decline in sales in the first half of fiscal 2024. The tech stock is now down 20% versus its year-to-date high.

Citi now rates Logitech stock at ‘neutral’

Earlier this year, Nate Olmstead also resigned as the Finance Chief of Logitech International. Charles Boynton replaced him on February 6^th.

The change in management may see investors question the company’s ability to deliver on its long-term growth strategy, as per Asiya Merchant – a Citi analyst.

She downgraded Logitech stock to “neutral” this morning and said it’s better to remain on the sidelines until the Swiss multinational clarifies its timeline and strategy to hit its growth objectives.

The Lausanne-headquartered firm has seen its sales decline over the past six quarters. In the latest reported one, sales were down almost 22% on a year-over-year basis.