Is Spin Master stock a buy?

Ahead of the company’s first quarter results, TD Cowen analyst Brian Morrison has cut his price target on Spin Master (Spin Master Stock Quote, Chart, News, Analysts, Financials TSX:SPIN).

On April 30, after the market close, TOY will report its Q1, 2025 results.

The analyst says the “T” word is all that is on anyone’s mind of late, and it will almost certainly overshadow the results.

“We expect Spin Master to report in line Q1/25 results and for investors to disregard and solely focus upon gaining any visibility into direction upon tariffs upon the toy industry and the ability to navigate their current impact,” he wrote. We see tremendous value in Spin based upon its IP alone, but believe visibility on tariffs will prove to be the necessary catalyst to surface shareholder value.”

As reported by the Globe and Mail, Morrison April 25 cut his twelve-month price target on Spin Master from $38.00 to $35.00, while maintaining his “Buy” rating on the stock.

At press time, shares of Spin Master were up 0.7% to $23.58.

Spin Master is a Canadian multinational children’s entertainment company renowned for its toys, television content, and digital games. Founded in 1994 in Toronto by Ronnen Harary, Anton Rabie, and Ben Varadi, the company began with a modest $10,000 investment and introduced its first product, the Earth Buddy—a novelty item that sprouted grass “hair” when watered. This early success laid the foundation for Spin Master’s growth into a global industry leader. ​

Over the years, Spin Master has developed and acquired a diverse portfolio of popular brands, including PAW Patrol, Hatchimals, Bakugan, Air Hogs, Kinetic Sand, and Tech Deck. The company has also expanded through strategic acquisitions, such as Cardinal Industries, Gund, Meccano, Rubik’s Cube, and Melissa & Doug. These moves have solidified its presence across various toy categories, from plush and construction sets to games and puzzles. ​

Spin Master’s business is structured around three creative centers: Toys, Entertainment, and Digital Games. Its Entertainment division has produced several successful television series, most notably PAW Patrol, which debuted in 2013 and has since become a global phenomenon. The franchise has generated over $15 billion in retail sales worldwide, with merchandise ranging from toys to everyday household items. ​