Market Overview

DA Davidson: Strong Gaming Accessory Sales A Bullish Signal For Turtle Beach

DA Davidson: Strong Gaming Accessory Sales A Bullish Signal For Turtle Beach

Chances are that many of the gamers you know received a new headset for Christmas.

And that means investors should buy stock in leading gaming headset maker Turtle Beach Corp (NASDAQ: HEAR), according to D.A. Davidson.

The Analyst

Analyst Tom Forte reiterated a Buy rating on Turtle Beach with a $30 price target. 

The Thesis

Forte’s reminder came as many other investors appeared to see the same thing he did: a report from retailer GameStop Corp. (NYSE: GME) that said its holiday same-store sales were up, primarily on the strength of a 28.7-percent increase in the sale of video game accessories.

The news sent Turtle Beach’s stock surging Friday. 

“Given GameStop is a top-five retailer for Turtle Beach, we believe this is a positive indication for HEAR,” Forte said in a note. 

Forte said he was most encouraged by GameStop’s accessories growth rates through the past year, noting that it reported higher growth each quarter.

Turtle Beach saw its business take off last year thanks to the incredibly popular "Fortnite" game, which has a “battle royale” mode that requires a headset, the analyst said — and the game's success has continued. 

Strong headset sales also should be seen as good news for Logitech International SA (NASDAQ: LOGI), Forte said. 

D.A. Davidson has a Buy rating on Logitech with a $58 price target. The company, which owns ASTRO Gaming, is expected to report earnings Monday.

Price Action

Turtle Beach shares were up 9.29 percent at $16.83 at the time of publication Friday, while Logitech was up 1.95 percent at $33.54. 

Related Links:

Analyst: Headset Maker Turtle Beach Continues To Benefit From 'Fortnite,' Battle Royale Gaming

Turtle Beach Sets Q4 Guidance To 'Easy Difficulty': The Sell-Side Reacts

Latest Ratings for HEAR

Nov 2020WedbushUpgradesNeutralOutperform
Sep 2020StifelInitiates Coverage OnBuy
Apr 2020WedbushDowngradesOutperformNeutral

View More Analyst Ratings for HEAR
View the Latest Analyst Ratings


Related Articles (HEAR)

View Comments and Join the Discussion!

Posted-In: D.A. Davidson Fortnite Tom ForteAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

YEXTDA DavidsonMaintains20.5
BYDB of A SecuritiesMaintains47.0
SAICMorgan StanleyMaintains98.0
PVHMorgan StanleyMaintains104.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at