It’s time to move to the margins for Logitech as it deals with more competition, UBS said. Analyst Joern Iffert downgraded the stock to neutral from buy, saying the Swiss-American computer peripherals company will face a tough few quarters amid rising inflation and a weaker consumer. Along with the downgrade, the analyst lowered his price target to CHF 57 from CHF 66. The new target assumes growth of 9% over the next 12 months. Iffert also cut EPS estimates for 2024 and 2025 by 10% and 11%, respectively. “We have conducted various industry analyzes and expert calls and have concluded that the environment for Logitech is getting tougher,” Iffert told clients in a note on Tuesday. “Cost savings will drive earnings growth, but Logitech operates at a low barrier to entry in the end hardware market, and it’s critical that we have some visibility into top-line growth, which we lack right now,” Iffert added. The analyst outlined several reasons for the downgrade, including a tougher macro for hardware and software firms. Iffert cited recent layoffs at Logitech competitors Dell and Zoom, as well as recent reopenings in China, which could mean lower demand for gaming. The analyst expects Logitech’s revenue growth to be positive in calendar year 2024.[Despite] declining sales, we think earnings can be strong in FY24E. But Logitech’s hardware end markets have low barriers to entry and technology migration can be a risk,” Iffert wrote. Meanwhile, the analyst predicts that competition from larger consumer and technology companies such as Apple or Meta will grow in the medium term. Logitech’s US-listed shares have fallen this year down 12%, worse than the 4% decline in the S & P 500. Computer peripherals shares fell nearly 1% in premarket trading — CNBC’s Michael Bloom contributed to this report.