Monday, KeyBanc Capital Markets initiated coverage of RC2 Corporation (RCRC) with a BUY rating and established a price target for the company's stock at $18. The brokerage said share price under performance over the past six months has created an attractive valuation.
The firm noted that investors' concerns surrounding the loss of a portion of the Thomas license and the uncertainty surrounding an impending acquisition now adequately discounted in the stock price. It also believes that the introduction of new products over the next year as well as the potential announcement of an accretive acquisition should provide upside catalysts for the stock.
Further, analyst Scott Hamann said improving visibility in future growth initiatives has created a compelling risk/reward scenario. KeyBanc said the company has a significant amount of exposure to end markets related to prenatal care through the mother, infant & toddler segment, unlike many of its toy company peers.
As such, the brokerage introduces 2009, 2010 and 2011 earnings per share estimates of $1.45, $1.50 and $1.70, respectively.
On Monday, the stock closed at $14.46.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.