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

Small Cap Consumer Research

Equity research on small cap consumer names.

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 $40 price target for JAKKS Pacific after the company announced slightly below consensus 4Q24 results, launched a $1.00 annual dividend per share program, and remained confident in their ability to drive solid results, even in the face of tariffs and economic uncertainty.</li><li>We believe, with continued strong licensed products, easy comparisons (especially in 1H25) and upside drivers in international, expansion into the sporting goods channel with Authentic Brands Group ("ABG") seasonal offerings, The Simpsons and further private label expansion, momentum will remain strong at JAKKS.</li><li>Now with a compelling dividend and a valuation of 4.6X our 2026 EBITDA projection, we believe the risk/reward in JAKK remains compelling, and we reiterate our Buy rating and $40 price target.</li></ul>

We are reiterating our Buy rating and $40 price target for JAKKS Pacific after the company announced slightly below consensus 4Q24 results, launched a $1.00 annual dividend per share program, and remained confident in their ability to drive solid results, even in the face of tariffs and economic uncertainty.We believe, with continued strong licensed products, easy comparisons (especially in 1H25) and upside drivers in international, expansion into the sporting goods channel with Authentic Brands Group ("ABG") seasonal offerings, The Simpsons and further private label expansion, momentum will remain strong at JAKKS.Now with a compelling dividend and a valuation of 4.6X our 2026 EBITDA projection, we believe the risk/reward in JAKK remains compelling, and we reiterate our Buy rating and $40 price target.

JAKK: 4Q Review: Solid Q, Dividend Catalysts for 2025; Reiterate Buy, $40 PT