Rodman & Renshaw has published a research report on Majesco Entertainment Company (NASDAQ: COOL [FREE Stock Trend Analysis]) and has initiated coverage on the company with a Market Outperform rating.
In the report, Rodman & Renshaw writes, "COOL stock went from under a dollar to as high as ~$4.50 in the first half of 2011 helped by healthy results for Zumba 1. Since then the stock has drifted lower to the mid $2 levels, perhaps as a result of a gap in new titles being released in the seasonally slower period. The company's first quarter (ending Jan 31) has historically been its strongest as the company strategically takes advantage of the holiday season to release titles. Going into the 2011 holiday season the company had 2x the number of titles released as it did in the same period of the previous year with Zumba 2 being the highlight. We believe holiday sales of Zumba 1 and 2 could provide a basis for a positive revenue and earnings surprise and attract investor attention."
Rodman & Renshaw has also established a $7 price target on Majesco Entertainment, which is closed yesterday at $2.75.