Needham analyst Scott Berg initiated coverage of Rosetta Stone with a Buy rating and $20 price target. The analyst is positive on the company's position as a "leading provider of literacy and language training", citing its return to growth this year after a period of business model transition. Berg also believes that Rosetta Stone can accelerate its growth rate over the next two years with increased penetration of its Lexia literacy platform within the K-12 market and sees the company delivering "improved leverage" in its business model. At 1.7-times enterprise value to his expected FY20 revenue, the analyst sees the stock offering an "attractive buying opportunity".