
Needham & Co. Reiterates “Strong Buy” Rating on Mattel (MAT)
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.
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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