Needham & Company Maintains a 'Buy' on Mattel (MAT); Has Hit On Its Hands; Accretive to 2013
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Price: $15.03 +1.01%
Rating Summary:
14 Buy, 11 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 11 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Mattel Inc. (NASDAQ: MAT) price target raised $1 to $33.
Needham analyst says, "MAT announced the much-rumored agreement to buy Hit Entertainment from Apax for $680 mm. The purchase price was a bit lower than we had assumed, and we continue to believe the deal gives MAT a nice boost to its portfolio of preschool IP. We expect the deal to be accretive to 2012 and 2013 results, not counting one-time costs which could offset the benefits in 2012. We are raising EPS estimates and our price target to reflect the contribution."
"We assume an interest rate of about 5.5% on the $680 mm. We also assume one-time costs of approx $30 mm will offset the EBIT contribution from Hit in 2013. Without that, we believe the deal would add about $0.07 to 2012 EPS. For 2013, we believe it will add $0.15, and have raised our estimate from $2.60 to $2.75."
For more ratings news on Mattel Inc. click here and for the rating history of Mattel Inc. click here.
Shares of Mattel Inc. closed at $28.26 yesterday.
Needham analyst says, "MAT announced the much-rumored agreement to buy Hit Entertainment from Apax for $680 mm. The purchase price was a bit lower than we had assumed, and we continue to believe the deal gives MAT a nice boost to its portfolio of preschool IP. We expect the deal to be accretive to 2012 and 2013 results, not counting one-time costs which could offset the benefits in 2012. We are raising EPS estimates and our price target to reflect the contribution."
"We assume an interest rate of about 5.5% on the $680 mm. We also assume one-time costs of approx $30 mm will offset the EBIT contribution from Hit in 2013. Without that, we believe the deal would add about $0.07 to 2012 EPS. For 2013, we believe it will add $0.15, and have raised our estimate from $2.60 to $2.75."
For more ratings news on Mattel Inc. click here and for the rating history of Mattel Inc. click here.
Shares of Mattel Inc. closed at $28.26 yesterday.
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