RyanKing999/iStock via Getty Images
Corsair Gaming (NASDAQ:CRSR) shares rose 3.5% in pre-market trading on Monday as investment firm Wedbush upgraded the computer peripherals company, citing a belief that it will return to profitability in the near-term.
Analyst Alicia Reese raised her rating on Corsair Gaming (CRSR) shares to outperform from neutral, noting that the company looks better positioned than its peer to return to growth.
“Corsair has a defensible niche in gaming peripherals driven by a small, but dedicated base of hard-core gamers,” Reese wrote in an investor note.
“Coming out of tough comps, we think Corsair is well-positioned with its product and geographical mix, as its domestic market begins to rebound, its European market is just beginning to inflect, and an Asia rebound appears further out,” Reese added.
Reese also pointed out that Corsair (CRSR) should see a “earlier” replenishment of its peripherals, thanks in part to a “solid” video game release schedule, aided in part by the second-quarter launches of The Legend of Zelda: Tears of the Kingdom and Diablo IV, Starfield in the third-quarter and the coming launch of Marvel’s Spider-Man 2 in the fourth-quarter.
“As demand begins to rebound in [second-half of 2023], we think Corsair can meaningfully rebound given its healthy inventory and premium pricing,” Reese explained.
Corsair is slated to report second-quarter results on August 3 after the close of trading. A consensus of analysts expect the company to earn 9 cents per share on $322.85M in revenue.
Analysts are largely cautious on Corsair Gaming (CRSR). It has a HOLD rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha’s quant system, which consistently beats the market, rates CRSR a HOLD.
More on Corsair Gaming
Corsair Gaming: Not Buying At These Prices Corsair Gaming: Market Share Gains Keep Turnaround On Track