LeapFrog (LF), which makes computers for children, is advancing after research firm Roth Capital wrote that the stock's drop of over 10% yesterday was "unwarranted." In a note to investors earlier today, Roth analyst Elizabeth Pierce wrote that the decline was likely caused by a misunderstanding about a Wal-Mart (WMT) ad for a LeapFrog product called the Leapfrog LeapPad Leapster 2, a portable video game console. The ad said that the product, which was updated in 2009, will be sold for just $20, the analyst wrote. Investors likely thought the ad was referring to Leapfrog's recently launched LeapPad 2, a computer tablet for children that's selling for $99, Pierce believes. The analyst doesn't expect the LeapPad2 to sell for less than $99 during this holiday season, and her checks indicate that sales of the tablet have been strong so far. Pierce expects LeapFrog to report solid results going forward and reiterated a $15 price target and Buy rating on the stock. In early afternoon trading, LeapFrog rose 27c, or 3.63%, to $7.71.
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