The stock price of hardware and accessories companies was hammered in 2022. Turtle Beach (NASDAQ: HEAR) was no exception as the stock price declined 68% from January 2022 to January 2023.
Going into 2023, DFC Intelligence is bullish on the category in general. As the installed base for PlayStation 5 and Xbox Series X/S catchup to demand it will naturally result in growth for the accessories side. Meanwhile, new graphics cards from Nvidia and AMD are resulting in new PC builds that will require accessories.
Turtle Beach stands to benefit from this growth as they focus on a growing line of high-end accessories for the PC and console systems that includes headsets, microphones, game keyboards and mice, and custom controllers like a complete flight simulation system.
There are also investor concerns about the economy that are acting as a general drag on the stock market. DFC believes that a recession will actually benefit a company like Turtle Beach. As people stay at home more because of the high cost of gas, restaurants and other outdoor activities, spending is likely to shift to the video game category.
Overall investors are fairly bullish on Turtle Beach expecting a 70+% price growth to a target of $12.75. Count DFC as looking for more growth with a target price of $16. This would still put the stock below the January 2022 high of $23.