LeapFrog Enterprises, Inc. (NYSE:LF)

EBStroke (< 20) Submitted: 9/21/2012 2:34:00 AM : Start Price: $8.65 LF Score: -7.25

Zacks Rank 4-Sell, Recommend Neutral, Industry Rank 110 / 265, Target 36.00, Avg target of 11 analyst 36.40- 5,10, 20 day moving averages all downNEW YORK (MarketWatch) — While toys are a hallmark of the holidays, for toymakers, this year may not turn out to be a merry season.On Wednesday, veteran industry analyst Sean McGowan at Needham cut his ratings on three top publicly traded toymakers — Mattel Inc. (US:MAT) , Hasbro Inc. (US:HAS) , and Jakks Pacific Inc. (US:JAKK) — to hold from buy, citing macroeconomic concerns as well as individual issues that could hurt the manufacturers of playthings from Barbie dolls to Monopoly board games. He already lowered his rating on LeapPad maker LeapFrog Enterprises Inc. (US:LF) to hold last month.In Wednesday afternoon trading, Mattel dropped 1.9%, while Hasbro fell 0.6%. Jakks shares dropped 5.2%, while LeapFrog inched up 0.6%.Among some of his concerns, U.S. retail sales of toys, according to research firm NPD Group, dropped in the low-to-mid-single digit in the first quarter and declined at a double-digit rate in the second quarter, the first double-digit decrease McGowan could recall in his more than 25 years covering the sector.“So far things are still pretty soft in the third quarter,” he said in an interview. “I don’t have a lot of confidence to think (sales are) going to be up in the fourth quarter. There’s a potential for disappointment.”