Maxim starts Jakks Pacific at Buy on toys market growth, favorable film slate

Maxim initiated coverage of Jakks Pacific with a Buy rating and $46 price target. The company is well-positioned in the $28B toys market, which has been growing at a 6% CAGR expected to sustain this rate, the analyst tells investors in a research note. Following a slow first half of 2024, a sales rebound in the second half of the year is expected, with a favorable film slate seen as a catalyst, the firm added.