Turtle Beach's (TBCH) takeover of Performance Designed Products, or PDP, is going "very well" and it is expected to generate more than $400 million in total revenue in 2025, Wedbush said in a Friday note.

There should be "meaningful" earnings before interest, taxes, depreciation, and amortization over the next several quarters due to enhanced product margins from PDP, promotional levels, and expense cuts, analysts led by Michael Pachter wrote.

The analysts also expect the company to continue buying back shares while "it trades at a deep discount to its peers."

Wedbush said the EBITDA margin expansion will occur "especially if there is revenue upside" due to the Switch roll out in summer and GTA 6 in October.

Wedbush raised Turtle Beach's price target to $21 from $20 and maintained an outperform rating on the stock.

Shares of the company were down 16% in recent Friday premarket activity.