UPDATE: Topeka Capital Markets Initiates Checkpoint Systems at Buy on Turnaround Play

In a report published on Monday, Topeka Capital Markets analyst Chris Kapsch initiated coverage on Checkpoint Systems (NYSE: CKP) with a Buy rating and a price target of $20.00.

In the report, Topeka Capital Markets noted, "We view CKP as a special situation turnaround play with upside potential in the shares from the continued effective execution of a cost-reducing restructuring effort, possible benefit from recovering consumer spending on retail/apparel, and a call option on the ultimate broader adoption of RFID in the retail/apparel industry, as means for retailers to drive enhanced merchandise availability and inventory visibility. CKP's 2Q13 results may prove pivotal; we believe a credibly-profitable 2Q13 and 2H13 earnings performance would convince investors CKP has turned the corner on restructuring, driving share price appreciation for the balance of 2013."

Checkpoint Systems closed on Monday at $13.83.