Turtle Beach (NASDAQ:HEAR) Corporation (NASDAQ: HEAR) has maintained its Buy rating and $26.00 price target according to Roth/MKM.
The firm anticipates Turtle Beach to announce its third-quarter results for 2024 around November 7.
The forecast is based on strong revenue growth, attributed mainly to the acquisition of PDP and the introduction of new products. Additionally, the firm expects an increase in AEBITDA, resulting from operational leverage and cost synergies following the merger.
Moreover, the increase in AEBITDA is projected to stem from the operational efficiencies and cost synergies realized after the merger. These aspects are likely to have bolstered Turtle Beach's profitability and are viewed as a positive sign for the company's financial health.
Looking forward, Roth/MKM suggests that Turtle Beach is positioned for robust growth in the fourth quarter of 2024. This optimism is based on the same elements that are believed to have driven the company's success in the third quarter, including the PDP acquisition and new product launches. Additionally, Turtle Beach's ongoing efforts to expand internationally are expected to further enhance its growth prospects.
The firm's confidence in Turtle Beach's future performance reflects an expectation of sustained momentum, leveraging the recent strategic moves and product developments. As the company gears up to report its third-quarter results, investors and stakeholders will be watching closely to see if Turtle Beach's financials align with Roth/MKM's positive outlook.
In other recent news, Turtle Beach Corporation has announced several key developments. The company reported strong second quarter results, with revenues and AEBITDA figures surpassing expectations. This performance was attributed to reduced costs, an expanded product line, and improved gross margins. Furthermore, Turtle Beach has expanded its gaming accessories offerings in Canada and Latin America, including Mexico, Colombia, and Chile.
In addition, the company's CFO, John Hanson, has announced his retirement, with a search underway for his successor. Turtle Beach also appointed Libby Bush, Global Head of Media & Entertainment Partnerships at Creative Artists Agency, as a new independent director on its board.
Analysts from Roth/MKM have raised the stock price target for Turtle Beach to $26 from $25, reflecting their confidence in the company's financial health. The company's full-year revenue is projected to fall between $370 million and $380 million, with the pro forma combined adjusted EBITDA forecasted to range from $51 million to $54 million.
InvestingPro Insights
Recent data from InvestingPro adds depth to Roth/MKM's positive outlook on Turtle Beach Corporation (NASDAQ:HEAR). The company's market capitalization stands at $341.82 million, with a notable revenue growth of 59.39% in Q2 2024. This aligns with the analyst's expectations of strong revenue growth, partly driven by the PDP acquisition and new product launches.
InvestingPro Tips highlight that analysts anticipate sales growth in the current year, supporting Roth/MKM's projection of robust growth in Q4 2024. Additionally, the company has shown a significant return over the last week and a strong return over the last month, with the stock price currently at 89.49% of its 52-week high. This recent performance could be indicative of market confidence in Turtle Beach's strategic moves.
While Turtle Beach wasn't profitable over the last twelve months, InvestingPro Tips suggest that analysts predict the company will be profitable this year. This expectation aligns with Roth/MKM's forecast of increased AEBITDA due to operational leverage and cost synergies from the merger.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Turtle Beach, providing a deeper understanding of the company's financial health and market position.
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