UPDATE: Ascendiant Capital Markets Downgrades LeapFrog Enterprises to Buy Ahead of Earnings

Ascendiant Capital Markets downgraded LeapFrog Enterprises

from Strong Buy to Buy and lowered the price target from $15.00 to $12.00. Ascendiant Capital Markets commented, "LeapFrog will report Q4 2012 (December) results after market close on Wednesday, February 6. … We expect Q4 results well above our and consensus estimates, for revenue of ~$223 million and EPS of $0.49. Q4 guidance was for revenue of $198 - 213 million and for EPS of $0.41 – 0.47. We believe the upside may be as high as $50 million for revenue and $0.15 in EPS, though it is more likely that the upside will be more moderate. … We expect management to provide conservative initial 2013 guidance well below consensus estimates (for revenue of $581 million and EPS of $0.86)." LeapFrog Enterprises closed at $9.05 on Friday.