Turtle Beach initiated with a Buy at Roth Capital

Roth Capital analyst Sean McGowan initiated coverage of Turtle Beach with a Buy rating and $18 price target. The analyst notes that since peaking at $37.22 in June 2021, Turtle Beach’s share price has fallen over 75%. Besides the broader market selloff, McGowan believes Turtle Beach’s decline has two main causes, namely surprising weakness in the video game sector, leading to sales shortfalls and an industry-wide compression of stock prices; and a costly proxy fight and unsuccessful sale effort forced by an activist investor. The analyst thinks both of these factors will ease over the next 12-18 months, propelling Turtle Beach to at least $18.