Jakks Pacific initiated with a Buy at B. Riley

B. Riley initiated coverage of Jakks Pacific with a Buy rating and $37 price target. While the broader toy industry is experiencing some weakness due to the combination of macroeconomic pressures on consumer spending and the impact of the Hollywood strikes on content-led product development, both of these headwinds will be short-lived. the analyst tells investors in a research note. The firm is focused on the improvements that Jakks management has made “to be ready ahead of the eventual sales pivot.” Riley sees an attractive setup for organic growth as content-led production ramps and for inorganic growth to build depth within the current product line-up.