LeapFrog: Roth Capital Provides Highlights From Recent Investor Meetings

In a research report issued today, Roth Capital analyst Dave King assigned a Buy rating on LeapFrog Enterprises (NYSE:LF) with a price target of $9.00, following investor meetings with CFO Ray Arthur and Senior Director of Investor Relations Karen Sansot.

King wrote, “The overall tone of the meetings was seemingly mixed, but management reiterated its view that the company’s multi-year turnaround remains on-track even if improvement is nonlinear. Much of the discussions centered on recent challenges at retail and the outlook for new products heading into Holiday 2014.” The analyst continued, Management expects to have much of its excess retail inventory cleared in time for Black Friday, putting it in position to drive stronger sales of new products. The company entered 2014 with $20 million of excess inventory, driven by certain retailers’ decisions to discount older generation tablets as door-busters and the creation of an unattractive value proposition for the purchase of key bundled products. To relieve potential pressure this Holiday, management has limited its number of bundles and pre-arranged for certain door-busters, while a hot product in LeapTV should provide leverage through allocation decisions.”

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 1.2% and a 41.2% success rate. King has a -16.3% average return when recommending LF, and is ranked #1899 out of 3282 analysts.

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