HEAR - Turtle Beach gains after analyst upgrade on potential for sale

Turtle Beach (NASDAQ:HEAR) rose 5.2% after Wedbush upgraded the maker of gaming headphones to outperform on the increased likelihood of a sale after the company agreed to a peace offering with activist Donerail on Monday.  The headphone maker was upgraded to outperform from neutral by Wedbush analyst Michael Pachter, who raised his price target on the shares to $27 from $20. "The agreement between Turtle Beach and activist shareholder Donerail announced on Monday both removes the distracting proxy battle, and urges the existing Board to finalize a sale in under four months," Pachter wrote in a note earlier on Tuesday. Pachter's new $27 price target is based on a likely take-out multiple of 18x P/E, 9x EV-to-EBITDA, or 1x EV-to-revenue. At a peak multiple, Turtle Beach (HEAR) may have seen a price as high as $50, though that premium is "unattainable'' in the current environment. The agreement announced with Donerail on

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Turtle Beach gains after analyst upgrade on potential for sale