Jakks Pacific: Strategic Growth and Attractive Valuation Drive Buy Recommendation

Analyst Tom Forte from Maxim Group reiterated a Buy rating on Jakks Pacific (JAKK – Research Report) and keeping the price target at $33.00.

Tom Forte has given his Buy rating due to a combination of factors that highlight Jakks Pacific’s strategic positioning and growth potential in the toy industry. The company’s strong partnerships with major retailers like Walmart, Target, and Amazon, supported by exclusive and private-label products, provide a robust shelf presence and a competitive edge. Additionally, Jakks Pacific’s expansion into categories beyond core toys, such as seasonal goods and sporting equipment, helps mitigate the effects of seasonal sales fluctuations and enhances its year-round market presence.
Furthermore, Jakks Pacific’s promising intellectual property pipeline, set to boost revenues starting in 2026, and its solid financial standing allow for strategic moves like dividends and potential acquisitions. Despite challenges from tariffs, the company’s international expansion and diversified product strategy bolster its resilience and growth prospects. The stock’s current trading at a price-to-earnings multiple below the peer median, coupled with a 12-month price target of $33, underscores the attractive valuation and potential upside, reinforcing the Buy recommendation.

According to TipRanks, Forte is a 4-star analyst with an average return of 8.3% and a 45.77% success rate. Forte covers the Consumer Cyclical sector, focusing on stocks such as Jakks Pacific, Beyond Inc, and Allbirds.