Needham & Company Upgrades JAKKS Pacific (JAKK) to Buy

June 6, 2014 6:31 AM EDT
Get Alerts JAKK Hot Sheet
Price: $5.60 --0%

Rating Summary:
    4 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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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.

For an analyst ratings summary and ratings history on JAKKS Pacific click here. For more ratings news on JAKKS Pacific click here.

Shares of JAKKS Pacific closed at $7.31 yesterday.

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