JAKKS Pacific: Caught In Tariff Turmoil (Rating Downgrade)

  • JAKKS Pacific reported the company's Q2 report, now reflecting massive tariff pressure on earnings from Chinese sourcing. The outlook stands highly volatile. JAKKS' tariff mitigation has proven unsuccessful so far due to changing policies, and pricing power is very unsure in a weak consumer environment. I estimate JAKKS to have 31% upside to $24.8 in a base scenario, but such upside is highly uncertain.