Toymaker Mattel, Inc. ( MAT ) on Friday saw its "Strong Buy" rating reaffirmed by analysts at Needham & Co.
The firm also backed its $30 price target on MAT, suggesting a 12% upside to the stock's Thursday closing price of $26.68.
A Needham analyst commented, "In our view, the key takeaways were: 1) Mattel's big global brands are enjoying momentum, and should allow the company to do well even if retailers and consumers are generally more cautious this holiday season; 2) MAT continues to expect to achieve $150 mm in cost savings by 2012, with half of that coming from lower legal spending, despite the recent adverse decision in the case vs. MGA; and 3) Management continues to target gross margins of at least 50%, operating margins of 15% to 20%, a dividend payout ratio of 50% to 60%, and disciplined cash deployment on share buybacks and acquisitions."
Mattel shares were unchanged in premarket trading Friday.
The Bottom Line
Shares of Mattel ( MAT ) have a 3.45% dividend yield, based on last night's closing stock price of $26.69. The stock has technical support in the $23-$24 price area. If the shares can firm up, we see overhead resistance around the $28 price level.
Mattel, Inc. ( MAT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com