Turtle Beach (HEAR – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Jack Vander Aarde from Maxim Group reiterated a Buy rating on the stock and has a $24.00 price target.
Jack Vander Aarde has given his Buy rating due to a combination of factors including Turtle Beach’s impressive first quarter performance and strategic acquisitions. Specifically, the company’s first-quarter results for 2024 exceeded consensus estimates, with revenue growing by 9% year over year, which partly reflects the contribution from the recent acquisition of Performance Designed Products (PDP). This acquisition is anticipated to be highly accretive to Turtle Beach, providing immediate scale, diversified product offerings, and substantial cost synergies. Moreover, Turtle Beach’s management has reiterated guidance for significant year-over-year growth in revenue and adjusted EBITDA, projecting continued strong performance into 2024.
Additionally, Vander Aarde’s confidence in the stock is bolstered by Turtle Beach’s solid financial position, including a strong cash balance and the capability to generate positive free cash flow without the need for additional capital. The company’s proactive measures in share repurchases, which demonstrate management’s belief in the intrinsic value of the stock, further support the Buy rating. The company’s price target is predicated on an enterprise value to EBITDA multiple that is conservative when compared to peers, suggesting that the stock may be undervalued at current levels. These factors collectively underpin Vander Aarde’s Buy recommendation for Turtle Beach’s stock.
In another report released on May 8, Lake Street also reiterated a Buy rating on the stock with a $26.00 price target.
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Turtle Beach (HEAR) Company Description:
Turtle Beach Corp. engages in the development, commercialization, and marketing of audio peripherals. It operates through the Headset and HyperSound business segments. The Headset segment offers gaming headset solutions for video game and entertainment consoles, personal computers, and mobile and tablet devices. The HyperSound segment refers to a patent-protected sound technology that delivers immersive, directional audio with applications in digital signage and kiosks, consumer electronics, and hearing healthcare. The company was founded by Elwood G. Norris and James A. Barnes in 1975 and is headquartered in San Diego, CA.
