Piper Jaffray Trims Rosetta Stone Estimates; Maintains Neutral Rating

Based on more conservative unit volume assumptions, and associated pressure on margins, Piper Jaffray is cutting its 2010/2011/2012 estimates from $0.69/$1.21/$1.44 to $0.69/$0.88/$1.02 on shares of Rosetta Stone (NYSE: RST).

“Higher media costs, weak unit volume trends, and recent management turnover create significant near-term uncertainty for RST,” Piper Jaffray writes. “While we like the company's international and institutional opportunity, lingering weakness in the key US consumer market suggests the shares will likely remain range-bound on a near-term basis.”

Piper Jaffray maintains its Neutral rating.

Rosetta Stone currently trades at $22.78.