Corsair Gaming (CRSR) shares tanked over 11% on Friday after the gaming hardware company reported weaker-than-expected preliminary second-quarter results. Indeed, investment firm Baird described the quarter as “challenging.” However, it noted that an upcoming GPU refresh could help. Five-star analyst Colin Sebastian pointed out that the market for self-built PCs is currently stagnating, but a new upgrade cycle could revive it later this year or in early 2025.
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It’s worth noting that, so far, Sebastian has enjoyed a 56% success rate on his ratings, with an average return of 13.6% per rating. The analyst currently has a Hold rating on Corsair stock, with a $10 price target, and has labeled it as a “show me story.” This basically means that Sebastian needs to see more evidence of a turnaround before feeling confident enough to give CRSR a buy rating.
Corsair’s preliminary Q2 results showed revenue of about $261M versus the analyst consensus estimate of $308.52M. Similar to Baird’s expectations, the company anticipates a recovery in the latter half of 2024 and 2025. Corsair Gaming will release its detailed second-quarter results and financial outlook on August 1. Analysts expect earnings per share to come in at $0.08 per share.
Is Corsair a Good Stock to Buy?
Overall, analysts have a Moderate Buy consensus rating on CRSR stock based on three Buys, two Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 48% decline in its share price over the past year, the average CRSR price target of $14.20 per share implies 64.92% upside potential.
