Doug Creutz, an analyst from TD Cowen, maintained the Hold rating on Corsair Gaming (CRSR – Research Report). The associated price target is $15.00.
Doug Creutz has given his Hold rating due to a combination of factors affecting Corsair Gaming’s performance and outlook. Corsair’s Q4 results aligned with management’s guidance but fell short of both the analyst’s and the consensus estimates, suggesting some caution. Moreover, the initial FY24 revenue guidance provided by management did not meet the market consensus, reflecting only modest growth expectations in the components and systems segments, attributed to the current stage of the GPU cycle. This tempered outlook underpins the Hold rating, with the anticipation that significant growth may not materialize until the latter half of the forecast period and the next major GPU launch.
Additionally, Creutz’s analysis acknowledges the recovery in the Gamer & Creator Peripherals segment, aided by strong holiday spending and new high-average-selling-price product launches. However, this positive aspect is somewhat offset by the weakness in the Gaming Components and Systems segment, particularly due to softening demand in China. The adjustment of the price target from $16 to $15 reflects these mixed results and the lowered expectations for Q4. Despite some strategic moves by Corsair, including acquisitions and the launch of new marketplaces, the Hold rating suggests a wait-and-see approach until these initiatives can more significantly impact the company’s financial performance.
Creutz covers the Communication Services sector, focusing on stocks such as Take-Two, Warner Music Group, and AMC Networks. According to TipRanks, Creutz has an average return of 20.7% and a 65.08% success rate on recommended stocks.
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Corsair Gaming (CRSR) Company Description:
Corsair Gaming Inc is engaged in the business of providing high-performance gear for gamers and content creators. The product portfolio includes Cases, Keyboards, Mice, Headsets, Power Supplies, Gaming Computers, Gaming Chairs, Mouse pads, and other related products. The company operates in two segments namely, Gamer and Creator peripherals and gaming Components and systems.
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