MKM Partners Remain Bullish on Mattel (MAT)
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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