CIBC initiates Spin Master stock with neutral rating on tariff concerns
Investing.com
Published Jun 02, 2025 11:33AM ET
On Monday, CIBC (TSX:CM) analysts initiated coverage on Spin Master Corp . (TSX:TOY:CN) with a Neutral rating and set a price target of Cdn$28.00. The analysts recognized Spin Master as a significant player in the global toy industry, with annual revenues of $2.3 billion and healthy gross margins of 52%. The company, known for its popular brands and favorable economic conditions, maintains a strong financial health score according to InvestingPro analysis.
The report highlighted that despite Spin Master's strong market position, the toy industry faces new challenges due to tariffs. These tariffs affect an industry that is heavily reliant on imports and sensitive to economic changes. The analysts noted that Spin Master is in a relatively good position to manage these disruptions and mitigate most direct costs, supported by its moderate debt levels and solid current ratio of 1.11. InvestingPro data reveals 8 additional key insights about the company's financial position and growth prospects.
Spin Master's shares have recently recovered from lows, and the analysts believe the current stock price reflects a scenario of reduced tariff-related earnings. They stated that while there is potential for further gains if tariffs are relieved, there are still macroeconomic risks that could impact the stock.
The analysts concluded that a significant re-rating of Spin Master's stock would depend on a more stable trade environment. They are also looking for signs of strong consumer spending and effective execution from Spin Master before adopting a more optimistic outlook.
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Written By: Investing.com
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