Needham & Company Maintains a 'Buy' on Majesco Entertainment (COOL); Q2 In-line, But Challenged Short-Term Outlook

June 13, 2012 7:36 AM EDT
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Price: $3.48 -3.87%

Rating Summary:
    1 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Needham & Company maintains a 'Buy' on Majesco Entertainment (NASDAQ: COOL) price target of $3.00 (from $5.00).

Analyst, Sean McGowan, said, "COOL reported 2Q sales and EPS in line with our expectations. Sales fell 5.4% YoY to $30.4 mm vs. our estimate of $30.0 mm, which was in line with consensus...COOL continues to rely heavily on sales of Zumba-related fitness products, which accounted for 86% of revenues during 2Q."

McGowan said the company's demo of 'Baller Beats' at the E3 show got a lot of buzz and COOL also launched a beta version of Mini Putt Park for Facebook (NYSE: FB). However, COOL still cut guidance, citing a challenging retail environment. Therefore, McGowan lowered FY12 EPS estimate from $0.33 to $0.25 and revenues from $146 mln to $140 mln/

For an analyst ratings summary and ratings history on Majesco Entertainment click here. For more ratings news on Majesco Entertainment click here.

Shares of Majesco Entertainment closed at $1.90 yesterday.

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