Turtle Beach Positioned for Growth: Buy Rating with $20 Price Target Amid Successful PDP Integration and Strong Holiday Outlook

Michael Pachter, an analyst from Wedbush, maintained the Buy rating on Turtle Beach (TBCH – Research Report). The associated price target is $20.00.

Michael Pachter has given his Buy rating due to a combination of factors including the successful integration of PDP, which is expected to significantly boost Turtle Beach’s revenue and EBITDA margins by 2025. The company is projected to achieve over $400 million in total revenue with at least a 15% EBITDA margin, enhanced by potential revenue synergies. The anticipated strong performance in the upcoming holiday quarter, supported by normalized inventory levels and decent sell-through, further strengthens the outlook.
Despite challenges such as tariffs and macroeconomic headwinds, Turtle Beach is positioned for growth, with a price target of $20 based on a 7x EV-to-EBITDA multiple on FY:26 estimates. This valuation reflects a deep discount compared to peers, indicating significant upside potential. The PDP acquisition is expected to contribute approximately $100 million in its first year, with plans to rebrand PDP under the Turtle Beach name, leveraging its strong brand recognition to drive sales growth.