Piper Jaffray Maintains Neutral Rating Of LeapFrog Enterprises (LF)

Piper Jaffray reaffirms its Neutral rating on LeapFrog Enterprises (NYSE: LF) after yesterday's earnings report.

“LeapFrog posted December quarter results in-line with its early January pre-release. Holiday sales shortfall was attributed to weak category demand late in the December quarter. The company provided disappointing CY11 guidance, including relatively flat sales,” according to Piper Jaffray.

“We have lowered our CY11 estimates and now expect 2% top-line growth and $0.15 in EPS (from $0.25). Despite the challenging holiday, we believe LeapFrog's business remains in recovery mode, albeit at a much slower pace - it appears earnings progress has been set back another year.”

Piper Jaffray also kept its $4.50 Price Target on LeapFrog.

Shares of Leapfrog closed at $4.43 on Thursday's market close.