Corsair Gaming, Inc. (NASDAQ:CRSR) Just Reported, And Analysts Assigned A US$11.17 Price Target

It's been a good week for Corsair Gaming, Inc. (NASDAQ:CRSR) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.3% to US$7.46. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Corsair Gaming after the latest results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Corsair Gaming. Read for free now.

Taking into account the latest results, the consensus forecast from Corsair Gaming's five analysts is for revenues of US$1.48b in 2025. This reflects a decent 9.5% improvement in revenue compared to the last 12 months. Per-share statutory losses are expected to explode, reaching US$0.09 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.50b and earnings per share (EPS) of US$0.015 in 2025. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.

Check out our latest analysis for Corsair Gaming

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 6.9% to US$11.17, with the analysts signalling that growing losses would be a definite concern. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Corsair Gaming at US$13.00 per share, while the most bearish prices it at US$8.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Corsair Gaming is forecast to grow faster in the future than it has in the past, with revenues expected to display 13% annualised growth until the end of 2025. If achieved, this would be a much better result than the 4.0% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.6% per year. So it looks like Corsair Gaming is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest low-light for us was that the forecasts for Corsair Gaming dropped from profits to a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Corsair Gaming's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Corsair Gaming analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Corsair Gaming that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.