Market Overview

JAKKS Pacific Investors Get Coal In Their Stockings As Company Cuts Guidance

JAKKS Pacific Investors Get Coal In Their Stockings As Company Cuts Guidance

Following the negative pre-announcement from JAKKS Pacific, Inc. (NASDAQ: JAKK) last Friday, BMO Capital Markets downgraded the shares of the company and lowered its price target. The firm shared in a note released on Monday this is the second outlook reduction in two months.

Company's Line At Retail Suffering

The announcement, however, is not surprising for analyst Gerrick Johnson, as his recent retail checks revealed a negative trend, with each consecutive store visit raising additional red flags. Johnson noted that for a year that began with a lot of promise — including a compelling line of products, increased number of licensed tie-ins and solid performance of the broader toy industry — 2016 has culminated in a damp squib for the company's retail line.

Multiple To Be Impaired For Near To Medium Term

Although conceding that some of the weakness is due to market performance, BMO Capital Markets said it sees weakness in certain areas and brands in which the company participates. The firm also sees further degradation in good will with Wall Street. Accordingly, the firm believes even with a repair in business, multiple will be impaired for the near to intermediate term.

Lowering Estimates, Rating And Price Target

The firm lowered its 2016 and 2017 revenues, EBITDA and EPS estimates for the company. As such, the firm downgraded the shares of the company to Market Perform from Outperform and reduced its price target to $6 from $9.

At the time of writing, the stock was tumbling 27.30 percent to $5.12.

Latest Ratings for JAKK

Oct 2018MaintainsNeutralNeutral
Apr 2018MaintainsHoldHold
Feb 2018MaintainsMarket PerformMarket Perform

View More Analyst Ratings for JAKK
View the Latest Analyst Ratings

Posted-In: BMOAnalyst Color News Guidance Downgrades Price Target Analyst Ratings Movers Best of Benzinga


Related Articles (JAKK)

View Comments and Join the Discussion!
Need corporate guidance data?
Click here to see licensing options.

Latest Ratings

WEEDCantor FitzgeraldMaintains18.9
TGTXCantor FitzgeraldMaintains19.0
SPLKCleveland ResearchDowngrades
IQVWolfe ResearchUpgrades
PRAHWolfe ResearchUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

'Rogue One' Gives December Box Office A Bigger Boost

Fox's Sky Acquisition A Nice 'Combination Of Content And Distribution'