NEW YORK (AP) _ An analyst on Thursday said the dismissal of a lawsuit against toy maker Jakks Pacific Inc. should benefit the company.
BMO Capital Markets Corp. analyst Gerrick Johnson upgraded the company to "Outperform" from "Market Perform" and raised the price target to $32 from $28.
Johnson wrote in a note to investors that the dismissal of the lawsuit — in which World Wrestling Entertainment Inc. accused the toy maker of bribery and other actions — should "get the company out of Wall Street's penalty box, and is the primary reason for our change in rating."
Other factors are encouraging as well, he wrote.
"Inexpensive valuation, a strong product portfolio, and potential for acquisition, are several reasons this stock should interest investors, in our view," Johnson wrote.
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Even though JAKKS has been upgraded, at the present time they are down 71 cents.
