A couple days before Thanksgiving, Corsair Gaming stock [$CRSR] plunged nearly 15% from its high of $51.37 after Doug Creutz—analyst at Cowen—downgraded the gaming accessories manufacturer, thanks to its rather toffee-nosed valuation. Corsair is largely known for its power supplies and computer memory designed for high-performance gaming PC’s. The stock has surged 178% since the IPO in September, opening at $17 per share.
Shares culminated at $51.37 last week, then traded at a $34 handle during Wednesday’s session. Newsflash, the stock is no longer trading at a discount to its rival Logitech International [$LOGI]. Still, Creutz said, Corsair remains a strong company, and that he hasn’t changed his view on the executives that run it, or the underlying business. He has since raised his target to $37 from $32. Eleven analysts cover Corsair, and Creutz has it at a Hold while the others have rated it a Buy.
E-sports and game streaming still stand to reap healthy financial rewards for the company in the long run. Like other gaming companies, Corsair has cashed in on the stay-at-home orders during pandy. On Monday, CEO Andy Paul raised his full-year revenue guidance from $1.62 billion to $1.66 billion. Adjusted EBITDA is now expected to land near $197 million, up from $190 million. Backing out of the results from Corsair’s first three quarters, you get a fourth-quarter revenue target of roughly $513 million and adjusted EBITDA profits near $57 million.