Turtle Beach price target raised to $13.50 from $12 at Wedbush

Wedbush raised the firm’s price target on Turtle Beach (TBCH) to $13.50 from $12 and keeps a Neutral rating on the shares. While tariffs on Chinese imports to the U.S. negatively impact consumer electronics, Turtle Beach took proactive steps to mitigate the impact, the firm notes. The company will source U.S. demand from its Vietnamese production, wherever possible, and it expects less than 10% of U.S. demand to be satisfied by Chinese production. However, updated gross margin guidance that assumes that the 10% pause rate on Vietnamese imports will remain through the second of half of 2025 now appears overly optimistic, with the latest discussions pointing to a 20% rate. Wedbush thinks Turtle Beach can pass through around 20% tariffs with higher pricing, but any amount above that will be a margin hit.