Summary

  • Corsair Gaming (NASDAQ: CRSR) received a rating upgrade from Wedblush Securities from ‘neutral’ to ‘outperform’.
  • As per EODHD/Others data, CRSR shares rose 5.4% to US$18.3 after the rating upgrade from Wedblush Securities.
  • Wedblush believes that Corsair is well positioned as compared to its peers to return to profitability in near-term.

Computer component seller Corsair Gaming (NASDAQ: CRSR) received a rating upgrade from Wedblush Securities ahead of its earnings release. The brokerage had previously given Corsair a ‘neutral’ rating and had maintained a price target of US$17.5, which was raised to US$21.

Corsair provides high-performance gear for gamers and content creators. Some of the company’s products include keyboards, mice, headsets, and gaming computers. Corsair has a market cap of US$1.88 million.

As per data available on EODHD/Others, CRSR has a mean recommendation rating of 2.3 on a scale of one to five. Here, one represents a ‘strong buy’ rating and five represents a strong ‘sell rating’.

CRSR Price Chart; Image Source: CRSR EODHD/Others

CRSR shares rose 5.4% to US$18.3 after the rating upgrade from Wedblush Securities, as per EODHD/Others data. The stock closed at US$18.48 on July 31, 2023, marking YTD gains of 36.18%. The stock hit its 52-week high of US$20.7 earlier this year on May 30, 2023.

Wedblush suggests Corsair has an upside potential of 13.64%

Wedblush increased its price target on Corsair to US$21, which is 13.64% higher than CRSR’s closing price on Monday. However, the mean consensus price target on the stock is US$18.75, which is 1.46% higher than its closing price on Monday. Macquire Research and Stifel Nicolaus gave Corsair a price target of US$19, which has an upside potential of 2.81%.

A total of 8 analysts have covered the stock, among which two have given it a ‘strong buy’ rating and two have given it a ‘buy’ rating. Additionally, four analysts have given it a ‘hold’ rating and none of the analysts have given CRSR ‘sell’ or ‘strong sell’ ratings.

Corsair reported net revenue of US$354 million in Q1 2023, as against US$380.7 million in Q1 2022. The company also reported an increase in EBITDA from US$15.4 million in Q1 2022 to US$20.6 million in Q1 2023.

Corsair “well positioned” to return to profitability

Wedblush upgraded its rating and price target on Corsair as it believes that the company is well positioned as compared to its peers to return to profitability in near-term. The broker also added that CRSR is stable with its product and geographical mix to benefit from domestic market rebound.

After slowed growth in 2022, Corsair has seen its European market inflect and its Asian market rebound. On top of that, Wedblush believes that the company has a healthy inventory position, which could help earlier replenishment of peripherals.

For full year 2023, Corsair expects to bring in a net revenue of US$1.35 billion to US$1.55 billion. Meanwhile, its adjusted operating income is expected to fall in the range of US$75 million to US$95 million in 2023.