Mattel Inc. (MAT) PT Raised to $28.50 at DA Davidson on Strong POS Growth Driving Upside

April 23, 2021 8:32 AM EDT
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Price: $20.57 -1.34%

Rating Summary:
    12 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 5 | New: 58
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DA Davidson analyst Linda Bolton Weiser raised the price target on Mattel Inc. (NASDAQ: MAT) to $28.50 (from $23.00) after the company reported 1Q21 sales +47%, driven by POS growth of >30% and modest retailer restocking. MAT raised its 2021 sales and EBITDA guidance and lowered gross margin guidance by 50bp due to higher cost inflation, but upped its cost savings target.

The analyst maintained a Buy rating, stating "With the combination of strong top-line growth and continuing margin expansion, we think valuation will expand, getting closer to Hasbro's (HAS). We are raising our EV-to-EBITDA target to 13.0x from 11.5x and our PT to $28.50 from $23, based on 13.0x 2022E EBITDA of $926M."

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