Mattel (MAT) Estimates, PT Cut at Piper Jaffray

Piper Jaffray analyst Stephanie Wissink lowered estimates and her price target on Neutral-rated Mattel Inc. (NASDAQ: MAT) to $29.00 (from $36.00) citing near-term risks to estimates and valuation, questions about the dividend and a later-than-expected recovery.

Wissink comments, "Investor interest in Mattel continues to grow, with questions existing around estimate reasonability, dividend reclassification & potential cut, and underlying business exposure risk once Disney Princess dolls are extracted from the model in 2016. We see a period of heightened investment risk, and would recommend waiting to buy until a firm base of sales and earnings is established. Channel feedback (ex-Disney) remains concerning, with buy orders further contracting based on soft POS. We are lowering our estimates and PT. In tandem, we are introducing a multi-year scenario model that
provides a directional view of potential profit ranges and the related risk to cash flow and payout."

The firm cut FY 2014 EPS from $2.05 to $1.90 and FY 2015 EPS from $2.42 to $2.05.

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 $30.20 yesterday.

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