Corsair Gaming (CRSR) Stock Forecast & Price Target

Corsair Gaming Inc. has demonstrated notable growth in its peripherals segment, which increased 20% year-over-year to reach $94 million, highlighting a resurgence in consumer demand for gaming equipment. The company anticipates further revenue improvements through 2024, driven by a favorable industry environment, stabilized shipping costs, and maintained operational expense controls, leading to expected enhancements in adjusted EBITDA and margins. Additionally, Corsair's strong competitive position and the predicted upgrade cycle spurred by next-generation graphics cards and new game releases position the company for sustained growth and recovery in its components segment in the coming years.

Corsair Gaming Inc. has reported a decline in gross margin of 140 basis points year-over-year due to significant margin contractions in its Components and Systems segment, which counteracted a modest improvement in the Peripherals margin. In light of various challenges faced by the Components segment, Corsair has revised its 2024 revenue guidance downward by 14% to 8%, alongside a reduction in EBITDA expectations by 37% to 21%. Additionally, revenue from Other Components and Systems plummeted 38% year-over-year, driven by a slowdown in GPU refresh cycles and consumer preference for lower-priced offerings, signaling potential weakness in overall consumer spending.