12:06 PM EST, 03/06/2024 (MT Newswires) -- Turtle Beach ( HEAR ) is likely to report "decent" financial results and a 2024 guidance, when it reports its fourth-quarter 2023 results on March 13, Wedbush said in a note Wednesday.

"We expect Turtle Beach ( HEAR ) to reach at least $300 million in revenue by 2025 and at least 10% EBITDA margin," Wedbush said. The company has provided guidance for an EBITDA run rate of $28 million to $33 million as it enters 2024, " indicating that we can anticipate [9% to 11%] EBITDA margins in 2024," it added.

Wedbush believes that cost-cutting efforts and stock keeping unit optimization are underway. With normalized inventory during the holiday season and a rebound from a promotional environment, the company is expected to report accelerated growth. "We expect Turtle Beach ( HEAR ) to accelerate share repurchases as its shares are trading at a heavy discount to its historical trading range and its peers," it added.

Wedbush expects Q4 revenue at $111 million, slightly below the consensus of $112 million and within the implied guidance of $106 to $111 million and EPS of $0.55, under the consensus estimate of $0.60. "Turtle Beach's ( HEAR ) outlook remains promising, whether it continues as a publicly traded entity or becomes a potential acquisition target," the note said.

Wedbush maintained an outperform rating on Turtle Beach ( HEAR ) with a price target of $14.

Price: 10.01, Change: +0.03, Percent Change: +0.30