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 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.