UPDATE: Wunderlich Securities Initiates Coverage On Summer Infant

Danielle McCoy of Wunderlich Securities initiated coverage of Summer Infant, Inc. (NASDAQ: SUMR) on Wednesday with a Buy rating and $4.50 price target.

Summer Infant provides products that are innovative and safe for the development of children including baby monitors, bouncers and gates.

“Summer Infant's focus is to better understand and connect with the consumer, develop products that more closely fulfill demand, deepen market penetration, and widen its global distribution while enhancing execution to drive greater operational efficiencies,” McCoy wrote.

The analyst adds that investors should view the company as a “compelling margin turnaround story in its early stages” following recent “significant” changes to the company's senior management team, product innovation process and pricing strategy.

McCoy believes that with a new management team in place, the company will be able to reach a wider demographic and customer base and become an appealing vendor across new distribution channels including specialty retailers.