We are reiterating our Buy rating, projections and $30 price target for JAKKS Pacific with the company announcing 1Q26 (March) results after the close on Thursday. We believe 1Q will allow for the company to begin to reset investor expectations after what was an incredible tariff-driven roller coaster in 2025 that, while demonstrating the resilience and strength of the JAKKS Pacific business model, led investors to lose sight of the somewhat longer term game for the company. As such, we look for 2026 to further re-prove the company’s focus on the Freight on Board (“FOB”) business model, international expansion and the longer term vision to leverage the ability to create compelling offerings for a growing group of collectors, especially in the anime/manga/digital creators segment (beginning in 2027). We view the valuation of JAKKS, at 7.2X our 2027 EPS, even with over $4.75 per share in cash, as compelling and reiterate our Buy rating and $30 price target.
