We are reiterating our Buy rating, $40 price target and projections for JAKKS Pacific as we look at key trends for 2H2025 and beyond. With toy production, especially on the lower end, firmly established in China, and with limited near term options, JAKKS will, as they have done throughout their 30-year history, have to transform to maximize overall returns. We believe management has the financial firepower, relationships and product offerings to maintain their strong market position and once again quickly return to driving solid top and bottom line growth. Further, we believe there will be material market share opportunities to capture new licenses, share of shelf and, potentially new brands as the industry adapts. As such, and with JAKK trading at 5.8X our 2026 EPS, we believe the risk/reward remains a positive, and we reiterate our Buy rating and $40 price target for JAKK.
