UPDATE: Monness Crespi Hardt Downgrades LeapFrog Enterprises on Lack of Near-Term Catalysts

In a report published Tuesday, Monness Crespi Hardt analyst Jim Chartier downgraded the rating on LeapFrog Enterprises (NYSE: LF) from Buy to Neutral.

In the report, Monness Crespi Hardt noted, “We are downgrading shares of LeapFrog Enterprises, Inc. to Neutral (from Buy). We believe the company's revised guidance will prove conservative. However, we do not see any clear near term catalysts for the stock. Given management's revised guidance and commentary, we would not be surprised to see some discounting on LeapPad tablets this holiday season which will be interpreted negatively. Then, we expect a conservative outlook for 2014 when the company reports 4Q13 results. We continue to see the potential for improved execution from an upgraded management team and the opportunity for international growth. However, the launch of the LeapPad in new countries will likely begin in 2H14 and investors will remain skeptical about the LeapPad's 2014 prospects in the U.S.”

LeapFrog Enterprises closed on Monday at $8.67.