We are reiterating our Buy rating and $30 price target for JAKKS Pacific, and raising our projections after the company reported slightly better than consensus 1Q26 on virtually all levels, handily beating our somewhat “doomsday” driven projections, as international remained very strong, while highly difficult domestic comparisons resulted in a 16% drop in North American revenue. That said, we believe there are key signs the United States business is poised to normalize going forward in 2026, which should drive further upside at JAKKS. When combined with double-digit international expansion and a continued focus on cost containment, we look for JAKKS Pacific to begin to rebound in 2026 and, with the launch of anime/manga in 2027 and the return of key movie sequels, to reach further heights longer term. As such, we reiterate our Buy rating and $30 price target for JAKKS.
