Roth Capital analyst Dave King weighed in with some commentary on Mad Catz Interactive, Inc. (USA) (NYSEMKT:MCZ) after the company released its first-quarter results, posting EPS of $0.09 that exceeded Roth’s estimate of ($0.01), while revenue fell short due to continued runoff of products tied to older generation consoles.
King believes that the company is on the verge of becoming profitable on a core basis, helped by several tailwinds including the ongoing gaming console replacement cycle and launch of Rock Band 4, and shares look attractively-valued. The analyst noted, “Adjusting for lower revenue, offset by modestly lower expenses, we left our 2016 and 2017 EPS estimates unchanged at $0.05 and $0.05, respectively. We continue to see potential upside to these estimates stemming from the October 6 launch of Rock Band 4.”
King rates Mad Catz Interactive a Buy with a $0.65 price target, which implies an upside of 44.5% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Dave King has a total average return of -2.5% and a 52.1% success rate. King has a 4.4% average return when recommending MCZ, and is ranked #3257 out of 3681 analysts.