Turtle Beach up, Wedbush upgrades to 'outperform'

Turtle Beach

17/05/2022 12:41

** Shares of video game equipment maker  HEAR.O  up 3.7% at
$18.15 in premarket trading
    ** Wedbush raises rating to "outperform" from "neutral",
given increased likelihood of a favorable transaction closing
within next three months 
    ** HEAR gives three board seats to activist investor
Donerail Group as part of a settlement with hedge fund and other
shareholders  urn:newsml:reuters.com:*:nL3N2X82DF
    ** Brokerage also raises PT to $27 from $20, implying upside
of ~54% to last close
    ** "We think there is sufficient interest in Turtle Beach as
an acquisition target, as it has repeatedly proved it can
maintain or build market share in various environments, while
its nascent but rapidly expanding PC gaming headset and
accessories segment smooths otherwise volatile trends" - Wedbush
    ** Adds that in spite of difficult macro environment, HEAR's
long-term prospects remain favorable
    ** Avg. rating of 6 analysts is "strong buy"; median PT is
$29 - Refinitiv data
    ** As of last close, stock down ~21% this year

    

 (Reporting by Tiyashi Datta in Bengaluru)
 ((tiyashi.datta@thomsonreuters.com))