In the last two months, the share price has fallen nearly 20 per cent.
However, Wedbush Morgan Securities analyst Sean McGowan said that the recent decline in LeapFrog shares has made the stock more attractive.
"We believe the recent price decline has eliminated much of the downside risk, and that even minor whiffs of encouraging news in the coming months could lead the stock higher," McGowan wrote.
Though there is still uncertainty over results for the 2007 holidays and a "still-cloudy" outlook for 2008 and 2009, he said, the stock could rally in the near term.
LeapFrog has been struggling with soft sales lately as its ageing LeapPad technology continues to wind down, but it has just launched its new hope ClickStart, a TV-based my first PC. In March, LeapFrog said it fell to a loss in its fourth quarter as both domestic and international sales declined and costs rose.