Mattel: Jefferies upgrades to 'hold' - shares rise
(CercleFinance.com) - Jefferies has upgraded its rating on the Mattel stock from "underperform" to "hold" on valuation grounds, which has sent the toymaker's shares up over 6% today.
In a note sent to clients, the broker said that near-term risks around the liquidation of Toys R Us, or the delayed sales recovery are better known now. The broker has also raised its target price from 12 dollars to 13 dollars.
Jefferies expects the upcoming Q1 results to be "mixed," with sales and underlying earnings likely to fall short of expectations, although there will be a strong operating result, with the company having been more aggressive in terms of cost-cutting.
Mattel shares are up 7% at 14.5 dollars on the NYSE on Wednesday morning. Note that they have still fallen by 8% this year.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In a note sent to clients, the broker said that near-term risks around the liquidation of Toys R Us, or the delayed sales recovery are better known now. The broker has also raised its target price from 12 dollars to 13 dollars.
Jefferies expects the upcoming Q1 results to be "mixed," with sales and underlying earnings likely to fall short of expectations, although there will be a strong operating result, with the company having been more aggressive in terms of cost-cutting.
Mattel shares are up 7% at 14.5 dollars on the NYSE on Wednesday morning. Note that they have still fallen by 8% this year.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.