Imperial Capital Sees Competition for LeapFrog from Toys "R" Us
Imperial Capital has published a research report on LeapFrog Enterprises (NYSE: LF) and commented on the company facing competition from Toys "R" Us in the tablet market place.
In the report, Imperial Capital wrote, "LeapFrog stock has been under pressure recently likely reflecting concerns about the threat of increased competition in the kids tablet space, in our view. On 9/10/12, Toys “R” Us announced that it will launch its own proprietary tablet designed for children. The Tabeo tablet will be sold for $149.99 and will only be available at Toys “R” Us stores. Tabeo will be Wi-Fi equipped and use Google's Android operating system and be similar to other adult tablets like the iPad or Kindle Fire. Tabeo will have a 7-inch screen and come with 50 apps selected specifically for children. Other kid-focused Android-based tablets on the market today include the 7-inch Kurio tablet, the Meep, and the Lexibook Junior tablet."
Imperial Capital maintained its Outperform rating and $13 price target on LeapFrog, which is currently trading down 8.63 percent from Friday's $9.15 closing price.
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