Turtle Beach Corp is. US based games accessories company which recently has seen good growth due to the pandemic. Upside seems likely with $40 as the initial target.

Turtle Beach Corp (NASDAQ: HEAR) is a US based games accessories developer mainly focusing on headset equipment for gaming and professional use. The company was founded in 1975 and went public on the NASDAQ in 2010 at roughly $7 per share and peaked in 2013 at $84. It has since declined and currently sits at $38, but upside looks possible. 

The financial of Turtle beach are okay. Total market capitalisation is $445m with 2020 revenue at $360m with a profit after tax of $38.7m. If Q1 numbers can continue in 2021, revenue can be expected at $372m with a profit after tax of $35.2m, while this doesn't show 'growth' as such, it does show stability, which is what investors want. Filings from the most recent quarter show Turtle Beach had cash on hand $62.9m with total assets amounting to $207m. Total liabilities were good at just $80.2m. This gives the company a L/A ratio of just 38%, nicely below stock market average.

From a technical aspect the stock looks good with support below. MACD does trend negative, however, major trendline support sits below with the 50EMA and 100EMA acting as further support, even if the trendline did break. Initial support sits at $27.59, $25.33 and $20.60. To the upside, initial targets/resistance are $33.05 then the highs of $40. If Turtle Beach cracks this further upside to $55 is possible.

Overall Turtle Beach is a good stock, from a valuation point of view, its reasonably undervalued for American stocks so upside from that point could help the stock to the upside. Also, given how the pandemic has seen demand for console gaming and com punters rise, accessories would also naturally rise with this demand, so it would make sense to see Turtle beach doing record sales. Given these points and the trendline holding, Turtle Beach seems a good stock.