Shares of Corsair Gaming (NASDAQ:CRSR) popped today, up 12% as of 12:15 p.m. EDT, after the company received another bullish initiation from Wall Street. Corsair, which provides hardware for gamers and live streamers, went public a little less than a month ago.
Wedbush initiated coverage on Corsair with an outperform rating. Analyst Michael Pachter assigned a $25 price target, which represents approximately 25% potential upside from yesterday's close. Corsair has a "solid niche" market that consists of a "small, but dedicated base of hard core gamers." While most larger rivals address broader markets, Corsair focuses primarily on serving the esports market.
Pachter lays out a path for Corsair to sustainably generate 10% revenue growth, on average, in the years ahead. The company would just need to capture 1% of the live-streaming market in order to sell an incremental 10 million gaming controllers per year at over $50 per unit.
The Wedbush call comes after Corsair received a slew of other bullish initiations yesterday, including:
- Goldman Sachs: Initiates with a buy rating and price target of $32.
- Baird: Initiates with outperform rating and price target of $23.
- Barclays: Initiates with overweight rating and price target of $24.
- Stifel Nicolaus: Starts with buy rating and price target of $24.
- Cowen: Initiates at outperform with price target of $24.
- Credit Suisse: Initiates with outperform rating and price target of $24.
Perhaps adding to the bullish sentiment in the space, Logitech (NASDAQ:LOGI), which is one of Corsair's chief rivals, reported blowout second-quarter results yesterday, driven in part by strength in gaming peripherals.