Shares of gaming and content equipment manufacturer Corsair Gaming (CRSR) jumped 3.6% in Tuesday’s early trading session after closing 11.3% higher on June 14. The key reason behind the surge is that the stock is now one of the latest additions to the WallStreetBets trading community’s meme stocks list.
As per a report by InvestorPlace, Corsair made it to the list after earning 573 mentions in just four hours. In the meantime, the stock gained 17%. Some other stocks in the list include Clean Energy Fuels (CLNE), AMC Entertainment (AMC) and Workhorse (WKHS).
The mere mention led to more than 21 million shares of the stock trading on Monday. The daily average trading volume of the stock is about 1.3 million.
Another reason for the spike in the share price could be the release of positive data on video games sales. Consumer spending across video game hardware, content and accessories increased 3% in May 2021 compared with the previous year. (See Corsair’s stock analysis on TipRanks)
In May, Robert W. Baird analyst Colin Sebastian maintained a Buy rating and a price target of $48 (33.33% upside potential) on the stock.
Sebastian said, “Corsair continues to benefit from a broader product portfolio, diversification into gamer/creator peripherals, and economies of scale.”
He added, “With the potential for improving supply/demand balance later this year, we would be opportunistic buyers on pullbacks.”
Overall, the stock has a Strong Buy consensus rating based on 3 Buys. The average analyst Corsair price target of $50 implies 38.89% upside potential from current levels. Shares of CRSR have jumped 152.6% over the past year.
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