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

<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

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>Mattel, Inc. experienced a significant boost in its stock price after news surfaced that the private equity firm L Catterton had made a takeover bid for the toy manufacturing giant.</li><li>This development has attracted the attention of investors and fueled discussions about potential changes in the toy industry's landscape, especially in relation to its long-time rival, Hasbro.</li><li>Let's delve into Mattel's business operations and explore the potential valuation it could achieve through this deal.</li></ul>

Mattel, Inc. experienced a significant boost in its stock price after news surfaced that the private equity firm L Catterton had made a takeover bid for the toy manufacturing giant.This development has attracted the attention of investors and fueled discussions about potential changes in the toy industry's landscape, especially in relation to its long-time rival, Hasbro.Let's delve into Mattel's business operations and explore the potential valuation it could achieve through this deal.

Mattel Inc's Possible Acquisition By LVMH Backed L Catterton - What Is The Expected Valuation & The Deal Rationale?

<ul><li>We are reiterating our Buy rating, projections and $24 price target for JAKKS Pacific with the company announcing 2Q24 (June) results after the close on Wednesday.</li><li>While we do not expect, nor have we projected, a strong 2Q, we do believe management will be upbeat on a number of key fronts, including: 1) Cleaning up inventory levels in anticipation of Holiday strength and new launches; 2) gearing up for more normalized Halloween costume demand; 3) initial launches for The Simpsons lines to key domestic and international retailers; 4) progress on the international expansion front; 5) the initial shipments for the Authentic Brands partnership and 6) potential demand for Moana 2 and Sonic the Hedgehog 3 Holiday movies.</li><li>Further, we expect the balance sheet has remained debt free, cash rich and management will provide an update on potential return to shareholders.</li></ul>

We are reiterating our Buy rating, projections and $24 price target for JAKKS Pacific with the company announcing 2Q24 (June) results after the close on Wednesday.While we do not expect, nor have we projected, a strong 2Q, we do believe management will be upbeat on a number of key fronts, including: 1) Cleaning up inventory levels in anticipation of Holiday strength and new launches; 2) gearing up for more normalized Halloween costume demand; 3) initial launches for The Simpsons lines to key domestic and international retailers; 4) progress on the international expansion front; 5) the initial shipments for the Authentic Brands partnership and 6) potential demand for Moana 2 and Sonic the Hedgehog 3 Holiday movies.Further, we expect the balance sheet has remained debt free, cash rich and management will provide an update on potential return to shareholders.

JAKK: 2Q Preview: Setting up for Success; Reiterate Buy Rating, $24 PT

United States

Mattel, Inc. designs, manufactures, and markets a broad variety of children's toy products on a worldwide basis.  The Company sells its products to retailers and directly to consumers.  Mattel's products include branded fashion dolls, infant and preschool products, toy cars, and electrical vehicles, among others.

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Mattel Inc (MAT 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

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

Mattel Inc's Possible Acquisition By LVMH Backed L Catterton - What Is The Expected Valuation & The Deal Rationale?

Mattel, Inc. experienced a significant boost in its stock price after news surfaced that the private equity firm L Catterton had made a takeover...

Baptista Research

JAKK: 2Q Preview: Setting up for Success; Reiterate Buy Rating, $24 PT

We are reiterating our Buy rating, projections and $24 price target for JAKKS Pacific with the company announcing 2Q24 (June) results after the...

Small Cap Consumer Research

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