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LeapFrog Enterprises

"After a strong holidays (where the product was sold out at most stores), demand remains high while supply is still low," Ascendiant Capital Markets analysts wrote in a March 14 report. "We estimate that 800,000 units were sold in 2011, and have modeled sales of 1.5 million units in 2012, which we believe is conservative. We note that supply has improved recently at retailers (notably at Wal-Mart and Target this week), but is overall still in short supply. The company acknowledged that demand may outstrip supply through Q2."

Shares of LeagFrog hit a 52-week high of $8.05 on Wednesday. The stock's 52-week low of $2.57 was set on Aug. 11.

LeapFrog has a forward P/E of 13.08; the average for toy companies is 14.94. For comparison, both Mattel ( MAT) and Hasbro ( HAS) have lower forward P/Es of 12.63 and 11.06, respectively.

Five of the seven analysts who cover LeapFrog rated it buy; two analysts gave the stock a hold rating.

TheStreet Ratings gives LeapFrog a B grade with a buy rating and $8.29 price target. The stock has risen 42.4% year to date.

-- Written by Alexandra Zendrian

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