Corsair Gaming price target raised to $19 from $16 at Baird

Baird analyst Colin Sebastian raised the firm’s price target on Corsair Gaming to $19 from $16 and keeps a Neutral rating on the shares. The analyst said business trends are improving on the back of improving systems and peripheral demand trends, less discounting in the channel, and signs of an improving video game end-market. We expect margins should improve through 2023 with price stability, lower shipping costs and some potential operating leverage, although we note there is still some risk given the discretionary nature of Corsair’s product in a recessionary scenario.