Needham & Company Upgrades JAKKS Pacific (JAKK) to Buy
- Top 10 News for 8/22 - 8/26: Yellen Hints at Hike; Muddy Waters Picks New Target; Pfizer, Medivation/Pfizer Make it Official
- Carl Icahn Bought 2.3M Herbalife (HLF) Shares Today, Rips Bill Ackman
- Janet Yellen Jackson Hole Speech; Rate Hike Case has Strengthened
- Wall Street slips in wake of comments by top Fed officials
- Apollo Global to Acquire Rackspace (RAX) in $4.3B Deal
Needham & Company upgraded JAKKS Pacific (NASDAQ: JAKK) from Hold to Buy with a price target of $10.00.
Analyst Sean McGowan comments, "We are raising our sales and EPS estimates for JAKK and raising our rating from Hold to Buy, based on our belief that the company's sales momentum is accelerating, leading to higher profit margins. The company's recently completed offering of $100mm in convertible notes does result in significant dilution, but it also strengthens JAKK's financial position. After accounting for our higher operating forecasts, net of the dilution, our EPS estimates are modestly higher for 2014, 2015 and 2016. We believe the stock could trade up to $10 over the next year, based on fairly conservatives valuation assumptions."
The firm raised FY 2014 EPS from $0.60 to $0.65 and FY 2015 EPS from $0.65 to $0.70.
Shares of JAKKS Pacific closed at $7.31 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Dollar General (DG) to $78 Following 2Q Report
- Needham & Company Maintains 'Hold' Rating on Rackspace (RAX) Amid Merger; Still Sees Business Ramp Taking Years
- Deutsche Bank Upgrades Diana Shipping (DSX) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Upgrades
Related EntitiesNeedham & Company
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!