Wedbush bearish on Corsair Gaming in near-term, downgrades to 'neutral'

Corsair Gaming

06/02/2023 12:45

** Shares of computer component seller Corsair Gaming Inc
 CRSR.O  down 3.2% at $15.6 premarket 
    ** On track to open at its lowest in a week
    ** Wedbush downgrades CRSR to "neutral" from "outperform",
saying shares have run up to their PT of $17
    ** Says co's growth trajectory has meaningfully slowed over
past year given various macroeconomic challenges, and the winds
have not yet changed 
    ** In its view, CRSR set its guidance low enough to beat,
but harbor concerns that it will continue to set the bar
exceedingly low given difficult inventory buy-ins at retail
    ** Wedbush expects Q4 rev of $382 mln vs Street's
expectations of $379 mln, reflecting a 25% YoY decline across
all segments, adds co is poised to deliver a tough holiday
quarterly report
    ** Wedbush maintains a long-term positive view on CRSR,
though thinks shares will tread water for at least another two
quarters
    ** CRSR will report its Q4 results on Thursday after markets
close
    ** Up to last close, stock had risen 18.8% YTD after losing
35.4% of its value in 2022
 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))