What happened

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.

So what

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.

Corsair products including a headphone and a large computer screen.

Image source: Corsair.

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.

Now what

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.

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