Shares of LeapFrog (LF) are down 4.22% to $1.48 after BMO Capital lowered its price target to $4 from $8 while maintaining its "outperform" rating.
Last Thursday, LeapFrog announced its fiscal fourth quarter and full-year 2015 earnings results, with full year revenue of $339.1 million, or a loss of $3.12 per share, down 36% from $527.6 million last year.
Fourth quarter revenue was $33.9 million, or a loss of $1.08 per share, compared to $56.9 million, or a loss of $0.17 in the same period last year.
While the price target was lowered, the firm maintained its "outperform" rating and believes that trading below cash and book value, the company continues to be an attractive takeover target.
"We still see value in the LeapFrog brand, which is one of the most recognized and respected in the toy industry, occupying a desirable niche in the education segment," BMO Capital analysts said.
LeapFrog is a developer of educational entertainment for children that has product portfolio consisting of multimedia learning platforms and related content and learning toys.