Wedbush reiterates an 'Outperform' on JAKKS Pacific (JAKK); Oaktree Capital Propose to Acquire JAKKS for $20/Share
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Price: $25.70 --0%
Rating Summary:
7 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush reiterates an 'Outperform' on JAKKS Pacific (NASDAQ: JAKK) price target of $24.00.
Wedbush analyst says, "We believe this offer is serious as Oaktree is a major investment firm ($80 billion in assets) and owns 4.9% of JAKKS. The offer price is a 25% premium to JAKKS’s average stock price over the past month, and past two years. The total offer for the company is ~$670 million."
"We were surprised by this offer as we believed that JAKKS was in an acquisitive mode as opposed to being in a mode to be acquired, plus it is rare for a hostile takeover in the toy sector...We believe this offer, along with the recent buyout of RC2, will increase speculation about further acquisitions in the toy sector of Hasbro (NYSE: HAS), Mattel (NYSE: MAT), and LeapFrog (NYSE: LF)."
"We believe JAKKS will likely be acquired, but at a higher price - Oaktree stated that it was willing to increase the offer price based on due diligence. Although JAKKS management owns a small percentage of the company (~2%), we believe that Oaktree needs the cooperation of management to make this deal successful."
For more ratings news on JAKKS Pacific click here and for the rating history of JAKKS Pacific click here.
Shares of JAKKS Pacific closed at $16.00 yesterday.
Wedbush analyst says, "We believe this offer is serious as Oaktree is a major investment firm ($80 billion in assets) and owns 4.9% of JAKKS. The offer price is a 25% premium to JAKKS’s average stock price over the past month, and past two years. The total offer for the company is ~$670 million."
"We were surprised by this offer as we believed that JAKKS was in an acquisitive mode as opposed to being in a mode to be acquired, plus it is rare for a hostile takeover in the toy sector...We believe this offer, along with the recent buyout of RC2, will increase speculation about further acquisitions in the toy sector of Hasbro (NYSE: HAS), Mattel (NYSE: MAT), and LeapFrog (NYSE: LF)."
"We believe JAKKS will likely be acquired, but at a higher price - Oaktree stated that it was willing to increase the offer price based on due diligence. Although JAKKS management owns a small percentage of the company (~2%), we believe that Oaktree needs the cooperation of management to make this deal successful."
For more ratings news on JAKKS Pacific click here and for the rating history of JAKKS Pacific click here.
Shares of JAKKS Pacific closed at $16.00 yesterday.
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