Turtle Beach price target raised to $26 from $14 at Lake Street

Lake Street analyst Mark Argento raised the firm’s price target on Turtle Beach to $26 from $14 and keeps a Buy rating on the shares. Turtle Beach reported a “lukewarm” Q4, but “that was a sideshow compared to its other announcements,” including one that is “potentially transformative from a business perspective” and another that is “more window dressing but a nice near-term stock mover,” the analyst tells investors. Turtle Beach announced it was buying PDP, a $100M revenue annualized run rate VG accessories company, for $118M in cash and stock, while also announcing a $30M Dutch tender and stating that it installed Cris Keirn as the permanent CEO. The firm is “encouraged” that management and the board decided to bulk up and aggressively scale the business, which it sees ultimately making Turtle Beach “more attractive as a public or potentially private company,” the analyst added.