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, 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