Mattel's Entertainment Push: Analyst Eyes Booming Toy Sales With Disney's Moana 2 And Frozen 3 In The Pipeline

D.A. Davidson analyst Linda Bolton Weiser reiterated a Buy rating on the shares of Mattel Inc MAT with a price target of $26.00.

Mattel’s announcement of Fisher-Price’s entry into the wood toy segment is a $800 million market within the infant, toddler, and preschool category, said the analyst.

Fisher-Price Wood sets itself apart with on-trend design and accessible price points, appealing to millennial parents who seek products with an elevated aesthetic and sustainable materials, noted the analyst.

According to the analyst, the expansion into the wood segment is expected to be margin-accretive and provide growth opportunities across various product categories.

Other launches in the preschool segment include Thomas & Friends foray into a new segment called Talking Thomas and a new Barney preschool animated series planned to go on air in 2024 fall.

In 2024, MAT is launching Mini Barbie, a new product line that taps into the miniature collectibles trend with an estimated market of $1.6 billion globally.

Hot Wheels posted its sixth consecutive record year in 2023, and is expected to grow in 2024, opined the analyst.

Mattel Television Studios has 13 series and specials currently in production and more than 35 series and specials in development, said the analyst.

Upcoming film releases that are expected to boost toy sales include Walt Disney Company’s DIS Moana 2 in November 2024 and Frozen 3, which is expected to be released within the next two years.

Price Action: MAT shares are trading higher by 0.87% at $19.72 on the last check Friday.

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