Spin Master wins price target raise at TD Cowen

TD Cowen analyst Brian Morrison says Spin Master (Spin Master Stock Quote, Chart, News, Analysts, Financials TSX:TOY) could be positioned to outperform second-quarter expectations as retail ordering patterns normalize and investor confidence improves.

As reported by The Globe and Mail, in a July 3 preview of Spin Master’s July 30 second-quarter results, Morrison maintained his “Buy” rating and raised his target to $27.00 from $26. 00. The average target is $23.67.

“A return to historical retail ordering patterns, compelling offering including stabilization of M&D, clean channel inventory, and stable POS trends could support Spin outperforming Q2/26 consensus,” Morrison said.

The analyst said year-over-year growth should accelerate in the seasonally stronger third quarter, helping support confidence in Spin Master’s 2026 guidance and narrowing its valuation discount, which he said is near historical lows.

Spin Master reiterated its 2026 outlook when it reported first-quarter results April 30. Revenue was $328.5-million, down 8.6% from a year earlier, while Adjusted EBITDA fell to $17.2-million from $21.6-million.

The company reported a net loss of $32.0-million, or 32 cents per share, compared with a loss of $24.5-million, or 24 cents per share, a year earlier. Free cash flow improved to $71.1-million from negative $10.8-million.

CEO Christina Miller said the company’s focus on product innovation, evergreen properties such as Monster Jam and stabilization of Melissa & Doug is showing progress.

CFO Jonathan Roiter said cash generation improved because of cost discipline and working capital management, offsetting lower revenue after U.S. import orders were pulled forward last year ahead of tariffs.

Spin Master also repurchased $5.7-million of shares in the quarter and declared a quarterly dividend of C$0.12 per share payable July 10.

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