UPDATE: Stifel Nicolaus Downgrades Mattel
Stifel Nicolaus lowers its rating on Mattel (NASDAQ: MAT) from Buy to Hold as the company closed above the $30 target price on better than expected earnings for the fourth quarter.
Stifel Nicolaus comments, "While still constructive on the company's intermediate/longer-term fundamentals, with the shares trading at 13x+ our forward EPS est. and approaching 9x our CY12 EBITDA assumption, we think upside is less compelling near-term and thus our preference is to hold the shares. ...Other considerations for '12 include (1) tough comps for select core brands (i.e. Barbie/Other Girls/American Girl/Entertainment); (2) "another transition year" for Fisher-Price; (3) a weaker entertainment slate; (4) increased competition (at least expected on our part) in both the girls aisle and the industry (iPad); and (5) possible variability in legal spend."
MAT closed at $31 a share yesterday.
