UPDATE: BMO Capital Markets Upgrades JAKKS Pacific on Mixed Factors
In a report published Wednesday, BMO Capital Markets analyst Gerrick L. Johnson upgraded JAKKS Pacific (NASDAQ: JAKK) from Underperform to Market Perform, but lowered the price target from $7.00 to $6.00.
In the report, BMO Capital Markets noted, “We believe the current share price is already factoring in further deterioration in earning estimates. While earnings may, indeed, deteriorate further relative to Street estimates, future results may not be as bad as many investors currently fear. Furthermore, we believe several of the company's business units offer value for a potential industry acquirer. Meanwhile, the company's DreamPlay initiative appears to be written off by many as a failure even before the toys have hit the market. Though we place a low probability on it happening, should DreamPlay be successful, shares could end up being materially higher.”
JAKKS Pacific closed on Tuesday at $5.39.
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