MKM Partners Raises PT and Estimates on Mattel Inc. (MAT); Raises Few Concerns Too

July 17, 2012 5:10 PM EDT
Get Alerts MAT Hot Sheet
Price: $30.91 +4.71%

Rating Summary:
    12 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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MKM Partners maintains a 'Neutral' on Mattel Inc. (NASDAQ: MAT) price target of $33.00 (from $29.00).

Analyst, Eric Handler, said, "While 2Q results exceeded expectations, the HIT Entertainment is aiding margins more than we anticipated, and it is becoming clearer to us that Mattel is better strategically positioned than its peers based on its focus on girls and preschool toys (two of the industry’s better performing segments), we still have several concerns Specifically: (1) Tax benefit of $0.05; (2) shipments benefited from understocked Q1; (3) 2H growth could be challenging to retail environment in Europe and ongoing currency headwinds...Furthermore, at roughly 14x our 2012E EPS we believe the shares are fully valued."

Handler raises Q3 EPS estimate from $0.87 to $0.96 and FY12 from $2.30 to $2.48 (revenues from $6.35B to $6.44B)

For an analyst ratings summary and ratings history on Mattel Inc. click here. For more ratings news on Mattel Inc. click here.

Shares of Mattel Inc. closed at $31.04 yesterday.

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