Computer peripherals and hardware maker Corsair Gaming (NASDAQ:CRSR) shot up 11.4% in yesterday's trading, amid trading volume that measured around 40 times normal levels. The company held on to some of those gains going into this morning's trading session as well. Call options also surged, and while some might point to last month's impressive earnings report or a halo effect from the currently-running Electronic Entertainment Expo (E3) 2021 show for reasons behind the gains, there may be much simpler reasons on hand. Even as the Corsair Gaming stock price surges, financial analysts are substantially bullish on Corsair's future, and have been for months now.
Is Corsair Gaming Now A Meme Stock?
Corsair Gaming's financial results, posted last month, delivered solid outcomes for anyone considering investing therein. The company posted first-quarter earnings of $46.7 million, which was massively up from the $1.2 million posted the same time a year prior. Revenue, meanwhile, was up to $529.4 million, a 71.6% jump over the same time the preceding year. This was largely thanks to its gamer and creator peripherals operation, which better than doubled, seeing an increase of 132%.
General market conditions likewise helped; despite a gradually-reopening economy in the wake of Covid-19, consumers were still quite interested in staying home and playing video games. The currently-running E3 event is also fueling an interest in gaming as next year's crop of blockbuster titles emerges. The clear force driving Corsair Gaming's rise, however, is social media, and particularly Reddit, leading some to wonder if we have a new meme stock in the making. With call options up over 15 times normal levels on Corsair, it's easy to wonder just that.
Word from Yolostocks, a tracking service for real-time mentions of stocks coming from Reddit's r/wallstreetbets, revealed that Corsair Gaming had gone from a previous rank of 11th most mentions up to second place in the span of 24 hours. The company had received over 860 individual mentions to fuel its upward cant.
What Do Financial Analysts Make of the Corsair Stock Forecast?
When analysts like Jim Cramer of CNBC fame note that Corsair offers “...the high-performance equipment you need to dominate in e-sports,” and that he thinks “e-sports are here to stay,” it's easy to see why there's interest in such a stock. Financial analysts, meanwhile—based on our latest research—are quite optimistic about the Corsair stock forecast as well, as the company currently carries an average rating of “buy”. That “buy” rating has been in play, and static, for the last six months.
Six months ago, Corsair had seven “buy” ratings and two “hold” ratings to its credit. That figure has held true for the entirety of the last six months up until this very day. We are currently at seven “buy” and two “hold”, as we were in December.
The Corsair price target is in a fairly narrow range; the current consensus share price target is $44.67, with a high of $55 and a low of $24. With Corsair stock currently selling at $37.16 as of this writing, there is some substantial upside potential remaining.
As for recent action with the analyst pool, there hasn't been much. The latest development comes from Barclay's, who lowered its price target on the company from $51 to $47, though it maintained its “overweight” rating. February, meanwhile, saw a lot more action for Corsair Gaming, and much of it positive. Five separate analysts increased their price targets on Corsair that month. Credit Suisse upgraded from $41 to $49, and DA Davidson increased from $33 to $52. Macquarie, meanwhile, increased its target from $42 to $50. Goldman Sachs offered up backhanded praise, lowering the company's rating from “buy” to “neutral”, but raising the price target from $35 to $44. The clearest support of the company in February, though, was Wedbush, who not only upgraded the company from “average” to “outperform”, but also raised its price target from $49 to $55, the current high mark.
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