On Thursday, analysts at MKM Partners boosted the price target on toy maker Mattel, Inc. (MAT) as the company should see accelerated growth throughout the year.
The analysts maintain a “Buy” rating on MAT and raised the price target from $41 to $45. This new valuation suggests a 10% upside to Wednesday’s closing price of $40.94.
“Last month’s Toy Fair meetings reaffirmed our view that Mattel should see accelerating growth in 2013 and exceed its long-term financial targets of mid-single-digit revenue gains and a 6%-8% increase in operating income,” said analyst Eric Handler. “Our revenue and EPS estimates for the year of $6.9bn (+7%) and $2.85 (+31%) remain modestly above consensus expectations.”
Moreover, the analysts say that advertising for new products like Sophia the First and Max Steel should help boost demand. Also, a new campaign for Barbie should help the product return to growth in 2013.
Mattel shares were up 31 cents, or +0.75%, during Thursday morning trading. The stock is up +26.98% over the past year.
The Bottom Line
Shares of Mattel (MAT) have a dividend yield of 3.49% based on Thursday’s intraday trading price of $41.25 and the company’s annualized dividend payout of $1.44 per share.
Mattel, Inc. (MAT) is recommended at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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