Turtle Beach price target lowered to $20 from $22 at Roth Capital

Roth Capital analyst Sean McGowan lowered the firm’s price target on Turtle Beach (TBCH) to $20 from $22 but keeps a Buy rating on the shares after meeting with its CEO and CFO last week. The management team reflected on the company’s successful integration of last year’s PDP acquisition, coupled with disciplined product introductions and spending, which resulted in significantly higher profit margins in a “non-boom” revenue year, the analyst tells investors in a research note. Roth adds however that it is reducing its above-guidance sales and adjusted EBITDA estimates for Q4 and beyond, reflecting disappointing initial sales of a key gaming title and overall softer-than-expected consumer spending.