Mattel: BofA still a buyer, with $25 TP

(CercleFinance.com) - On Friday Bank of America renewed its buy rating on Mattel shares, along with its $25 target price, less than a week before the release of its Q3 results.


In its comments, it recommends investors to buy the stock in view of the positive surprises that could result from the success of the "Barbie" film, and for the potential for margin appreciation in 2024.

Despite the current slowdown in business, BofA believes that the toy and game manufacturer could raise its annual targets, due to the box-office success of "Barbie" worldwide.

Analysts point out that Mattel recently estimated the film's financial impact for this year at some $125m, a figure that only takes into account royalties, licensed products and figurines from the film.

However, Bank of America believes that this favorable effect could last well into the festive season, at least following its recent contacts with retailers.


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