Days after HP agreed to buy Poly, formerly known as Plantronics in a A$4.4-billion-dollar deal analysts are claiming that Logitech is the Company that is set to go head-to-head with HP with a big loser set to be Dutch Company Jabra who are still trying to grow share in the consumer headphone market.
Jabra has over 50 products listed at Amazon Australia, including speakers and headsets similar to what Poly manufacture with the Company now having to compete with one of the world’s largest PC Companies and a surging Logitech in both the consumer and B2b markets.
The Poly deal done at a 53% premium to its last closing share price, is seen as a smart move as more consumers work from home and want pro grade communication and video conference gear.
Companies are also investing in new video communication gear with the market set to be in growth mode for several years.
Analysts claim that Logitech is likely to keep gaining market share in the video conference market despite HP’s deal with Poly.
Analyst Adam Angelov from Seeking Alpha recommends a buy on Logitech, pointing out that Logitech had 31% of the video conferencing market as of last year, up from just 4% in 2016 and that is expected to grow to 34% by 2025.
“While acquisitions by a larger competitor are a risk, we view Logitech’s competitive advantage as sustainable given its marketing, design and innovation expertise as well as its scale within these niches,” Angelov wrote in a note to clients last night.
Angelov noted that HP has purchased Logitech competitors in the past, including HyperX in February 2021, but that had not impacted the company’s bottom line.
Instead, the deal between the two companies is likely to be more about growth in the overall market including the tender, pro-consumer and B2b markets.
“HP’s press release mentioned the role of hybrid work in driving demand across home set-ups and traditional office spaces to support hybrid work and collaboration with under 10% of the [more than] 90M global conference rooms still non-video enabled, suggesting major growth opportunities ahead,” he claimed.
Last week, Bank of America claimed that they see a 40% upside in the Logitech stock.
