Turnaround: Buy Turtle Beach Ahead Of EPS Re-Acceleration
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Quality Contrarian Value382 FollowersFollow5ShareSavePlay(11min)CommentsSummaryTurtle Beach (TBCH) is rated a Buy, with a 3-year IRR potential of ~30% driven by structural margin improvements and undervaluation.Gross margins are set to rise from 20% in 2022 to 37%+ in 2025, supported by cost shifts, tariff mitigation, and operating leverage.The PDP acquisition enhances diversification, synergy, and market share, positioning TBCH for above-industry growth and strategic resilience.Active share buybacks, a resilient balance sheet, and discounted valuation metrics underpin a compelling long-term asymmetric risk/reward profile. Trevor Williams/DigitalVision via Getty Images Recommendation I rate Turtle Beach (TBCH) a Buy with a 3-year IRR potential of ~30%. The company is now structurally stronger than in the past cycles as its gross margins has risen from 20% in 2022This article was written byQuality Contrarian Value382 FollowersFollowI am currently working as an investment analyst at a family office. My specialty is identifying high-quality and/or severely mispriced investment ideas. I believe that a great investment idea would "jump" at you intuitively and it comes in buying great companies at great prices. If you like my investment ideas, please do give me a follow!In my free time, I like to read books to educate myself and watch shows on Netflix.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You