We are reiterating our Buy rating, $30 price target and projections for JAKKS Pacific after meeting with management at their Santa Monica headquarters. With a 2025 of material industry turmoil (but still strong profitability for JAKKS) behind them, JAKKS is focused on what they do best – creating great toys for kids offering compelling value and pricing. 2026 is registering material progress in expansion efforts, from international to higher overall domestic market share and setting up for what should be a very strong 2027, with key movie releases (Frozen 3 and Sonic 4) and the launch of anime/manga/VTuber products, which will be leveraged via material international expansion (and increased infrastructure) and domestic strength. As such, we are even more confident in the conservative nature of our 2026 and 2027 projections, and reiterate our $30 price target, or less than 10X our 2027 EPS projection.
