Argus Upgrades Mattel To Buy

Loading...
Loading...
  • The share price of Mattel, Inc. MAT appreciated 41.09 percent over the past six months, rising to a high of $31.76 on February 3.
  • Argus’ John Staszak has upgraded the rating on the company from Sell to Buy, with a price target of $38.
  • Staszak believes that the robust results reported by the company for 4Q support the view that Mattel is in the early stages of a turnaround.

Analyst John Staszak expects “further gains in sales and earnings in the coming quarters as the company develops new products and improves relationships with retailers.”

Mattel reported its 4Q15 results on February 2, with the EPS ahead of the consensus and the 4Q14 levels. Net sales increased marginally year over year, just missing the $2 billion mark and beating the consensus.

“We believe that Mattel, under new CEO Christopher Sinclair, has improved marketing and business execution, and we expect this progress to continue,” Staszak said.

North American revenues rose 5 percent on a constant currency basis, while international sales were flat. Adjusted gross margin declined from 50.4 percent in 4Q14 to 50.2 percent in 4Q15, driven by unfavorable currency translation and marginally higher COGS.

While the Wheels Brand rose 26 percent, the Barbie line increased 9 percent. On the other hand, the Other Girls segment, excluding Barbie, decline 28 percent, with overall revenues for both Girls and Boys Brands rising 1 percent year on year on a constant currency basis.

Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasUpgradesAnalyst RatingsTrading IdeasArgusConsumer DiscretionaryJohn StaszakLeisure Products
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...