We are reiterating our Buy rating and $30 price target, rolling out 2026 Q projections and our initial 2027 look after JAKKS Pacific registered solid top and bottom line upside in 4Q25 (December), driven by strong international sales (up 9.9% YoY) and solid gross margin expansion (up 380 bp YoY) as the company remained conservative in a promotional domestic Holiday selling environment. Though traditionally a small quarter for the company, we believe the 4Q results demonstrate the strength of the JAKKS Pacific business model and the potential opportunities as the current tariff environment normalizes going forward and the company can further leverage their strong financial position to add/increase to their stable of strong licenses. As such, we view our unchanged EPS projection of $3.00 for 2026 and now, $3.24 for 2027 (still below the $3.79 for 2024), as achievable and, with JAKK trading under 6X our 2027 EPS, offering a compelling risk/reward.
