Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating and $41 price target for BBW and materially raising our projections after the company reported record 2Q results which beat Street expectations on both the top and bottom line, as Build-A-Bear stores registered solid results, while the high margin Commercial and International Franchising segment began their expected material ramp a little earlier (and with greater impact) than we projected.</li><li>Further, management continued to aggressively return capital to shareholders, purchasing 5% of BBW shares outstanding in FY24.</li><li>With an early Halloween driving strong initial 3Q results, we believe management reiterating FY24 guidance for top line growth in low to mid single digits and low singled digit pre-tax income could prove conservative, and we reiterate our Buy rating and $41 price target for BBW.</li></ul>

We are reiterating our Buy rating and $41 price target for BBW and materially raising our projections after the company reported record 2Q results which beat Street expectations on both the top and bottom line, as Build-A-Bear stores registered solid results, while the high margin Commercial and International Franchising segment began their expected material ramp a little earlier (and with greater impact) than we projected.Further, management continued to aggressively return capital to shareholders, purchasing 5% of BBW shares outstanding in FY24.With an early Halloween driving strong initial 3Q results, we believe management reiterating FY24 guidance for top line growth in low to mid single digits and low singled digit pre-tax income could prove conservative, and we reiterate our Buy rating and $41 price target for BBW.

BBW: 2Q Review; Proving the Power of "Furry Friends;" Reiterate Buy, $41 PT

<ul><li>We are reiterating our Buy rating and $41 price target and FY24 and FY25 EPS projections, but further back-end loading our FY24 quarterly projections, as we believe 2Q results, which will be announced next Thursday, will reflect slightly higher than expected discounting and tough comparisons in what is historically the least important quarter for the company.</li><li>That said, we believe the decision to roll out Halloween earlier than previously, the potential to leverage demand for multiple offerings, the expansion into Mini Beans, and continued high-margin franchise and commercial expansion, should drive strong 2H results.</li><li>Further, with management continuing to aggressively repurchase BBW shares, the stock registering an almost 3% dividend yield and a valuation (even with our Street-low projections), of 4.4X our FY25 EBITDA we believe, the longer term risk/reward for BBW remains highly impressive, and we reiterate our Buy rating and $41 price target</li></ul>

We are reiterating our Buy rating and $41 price target and FY24 and FY25 EPS projections, but further back-end loading our FY24 quarterly projections, as we believe 2Q results, which will be announced next Thursday, will reflect slightly higher than expected discounting and tough comparisons in what is historically the least important quarter for the company.That said, we believe the decision to roll out Halloween earlier than previously, the potential to leverage demand for multiple offerings, the expansion into Mini Beans, and continued high-margin franchise and commercial expansion, should drive strong 2H results.Further, with management continuing to aggressively repurchase BBW shares, the stock registering an almost 3% dividend yield and a valuation (even with our Street-low projections), of 4.4X our FY25 EBITDA we believe, the longer term risk/reward for BBW remains highly impressive, and we reiterate our Buy rating and $41 price target

BBW: 2Q Preview: Remaining Conservative; Reiterate Buy, PT

Podcast by Joe Weisenthal & Tracy Alloway, Odd Lots

Odd Lots

Podcast by Joe Weisenthal & Tracy Alloway

Bloomberg's Joe Weisenthal and Tracy Alloway explore the most interesting topics in finance, markets and economics. Join the conversation every Monday and Thursday.

<ul><li>Monopoly was originally created as a critique of capitalism but became a massively successful business itself.</li><li>Hasbro has grossed over $3 billion in revenue from the app version of Monopoly.</li><li>Hasbro CEO, Chris Cox, will be discussing the development of Monopoly and other games on the podcast.</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.</em></p>

Monopoly was originally created as a critique of capitalism but became a massively successful business itself.Hasbro has grossed over $3 billion in revenue from the app version of Monopoly.Hasbro CEO, Chris Cox, will be discussing the development of Monopoly and other games on the podcast.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

How a Traditional Toymaker Is Going Big on Digital Games

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Hasbro, Inc.'s second quarter earnings report for 2024 presents a mixed picture that merits attention from the investment community.</li><li>The company, well-known for its extensive range of entertainment and toy products, has demonstrated variable performance across its segments, which CEO Chris Cocks and CFO Gina Goetter elaborated on during the earnings call.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

Hasbro, Inc.'s second quarter earnings report for 2024 presents a mixed picture that merits attention from the investment community.The company, well-known for its extensive range of entertainment and toy products, has demonstrated variable performance across its segments, which CEO Chris Cocks and CFO Gina Goetter elaborated on during the earnings call.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

Hasbro Inc.: Expanded Licensing Partnerships

<ul><li>We are reiterating our Buy rating and $24 price target and raising our 2024 and 2025 projections for JAKKS Pacific after the company handily beat our 2Q24 projections, as gains in the core business offset expected material weakness in content-led (i.e. movie driven) offerings.</li><li>Further, with the recent launch of The Simpsons and Authentic Brands driven licensed offerings, the upcoming launch of key Holiday movie properties (Moana 2 and Sonic the Hedgehog 3), new owned properties and a continued focus on international expansion, we view our projections, even after our top and bottom line increases, as conservative.</li><li>Further, with JAKK continuing to trade at a material discount to their peers, we believe the risk/reward in the name remains impressive, and we reiterate our Buy rating and $24 price target.</li></ul>

We are reiterating our Buy rating and $24 price target and raising our 2024 and 2025 projections for JAKKS Pacific after the company handily beat our 2Q24 projections, as gains in the core business offset expected material weakness in content-led (i.e. movie driven) offerings.Further, with the recent launch of The Simpsons and Authentic Brands driven licensed offerings, the upcoming launch of key Holiday movie properties (Moana 2 and Sonic the Hedgehog 3), new owned properties and a continued focus on international expansion, we view our projections, even after our top and bottom line increases, as conservative.Further, with JAKK continuing to trade at a material discount to their peers, we believe the risk/reward in the name remains impressive, and we reiterate our Buy rating and $24 price target.

JAKK: Setting Sail for Sunnier Climes; Reiterate Buy, $24 Price Target

United States

Hasbro, Inc. designs, manufactures, and markets toys, games, interactive software, puzzles, and infant products in the United States and internationally. The Company's products include a variety of games, including traditional board, card, hand-held electronic, trading card, role-playing and DVD games, as well as electronic learning aids and puzzles as well as dolls and action figures.

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Hasbro Inc (HAS US)

BBW: 2Q Review; Proving the Power of "Furry Friends;" Reiterate Buy, $41 PT

We are reiterating our Buy rating and $41 price target for BBW and materially raising our projections after the company reported record 2Q results...

Small Cap Consumer Research

BBW: 2Q Preview: Remaining Conservative; Reiterate Buy, PT

We are reiterating our Buy rating and $41 price target and FY24 and FY25 EPS projections, but further back-end loading our FY24 quarterly...

Small Cap Consumer Research

How a Traditional Toymaker Is Going Big on Digital Games

Lizzie Maggie created Monopoly as a critique of capitalism, which has since become a massively successful game with various themed versions and a...

Odd Lots

Hasbro Inc.: Expanded Licensing Partnerships

Hasbro, Inc.'s second quarter earnings report for 2024 presents a mixed picture that merits attention from the investment community. The company,...

Baptista Research

JAKK: Setting Sail for Sunnier Climes; Reiterate Buy, $24 Price Target

We are reiterating our Buy rating and $24 price target and raising our 2024 and 2025 projections for JAKKS Pacific after the company handily beat...

Small Cap Consumer Research

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