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Turtle Beach Rises on Sales Demand for Gaming Headsets

Courtney Dentch
Turtle Beach Rises on Sales Demand for Gaming Headsets

(Bloomberg) -- Turtle Beach Corp.’s fourth-quarter sales likely benefited from strong demand for its gaming headsets after NPD data suggested a favorable read-through for the company, echoing positive comments from GameStop’s holiday results, DA Davidson analyst Tom Forte writes in a note. The stock is up 3.6 percent in pre-market trading.

Says NPD reported December gaming accessories and gamecards rose 29 percent compared from December 2017, with the full year growth reaching 33 percent to $4.5 billionDavidson adds any prolonged strength in battle-royale game formats could bring upside for Turtle Beach’s full year sales compared to the expectations baked in to the share priceRecommends buying Turtle Beach and Logitech International on the strength of the demand in gaming accessoriesForte’s call follows his note from last week, when the stock was reinstated with a buySeparately, Logitech was raised to overweight from neutral at JPMorgan on higher-margin growth opportunity in gaming and video collaboration and its “excellent balance sheet” which has cash available for tuck-in acquisitionsTurtle Beach has 5 buys, no holds, no sells, average price target $32: Bloomberg dataLogitech has 12 buys, 3 holds, no sells, average price target $45

To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net

To contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net, Brad Olesen

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