Maxim Group analyst Tom Forte has maintained their bullish stance on JAKK stock, giving a Buy rating yesterday.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tom Forte has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Jakks Pacific. Despite the recent underperformance in U.S. sales, largely attributed to tariff pressures, the company’s international segment has shown significant growth, with a 41% year-over-year increase in net sales. This international success demonstrates Jakks Pacific’s ability to capitalize on markets less affected by tariffs, which is a positive indicator for future performance.
Additionally, the company’s strong balance sheet, with a substantial cash reserve and no debt, provides a solid foundation for sustaining operations and pursuing growth initiatives. The attractive valuation of Jakks Pacific’s stock, trading at a discount compared to peers, coupled with a healthy dividend yield, further supports the Buy recommendation. While the uncertainty surrounding tariffs remains a concern, Jakks Pacific’s strategic positioning in the toy market and its proactive supply chain adjustments are seen as favorable long-term factors by Tom Forte.
Forte covers the Consumer Cyclical sector, focusing on stocks such as Jakks Pacific, Allbirds, and Beyond Inc. According to TipRanks, Forte has an average return of 9.2% and a 47.13% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $21.00 price target.