Mattel's High Inventory Is Not A Cause For Concern, Says This Analyst

Mattel's High Inventory Is Not A Cause For Concern, Says This Analyst
  • D.A. Davidson analyst Linda Bolton Weiser reiterated the Buy rating on the shares of Mattel Inc MAT with a price target of $45.00.
  • The analyst said the more muted 2022 outlook for Barbie is due entirely to Dream House softness due to its high price point and elevated consumer purchases during the pandemic.
  • Weiser noted that the consumers should notice the higher quality of MAT's Princess dolls versus Hasbro, Inc. HAS dolls.
  • RelatedMattel's Q2 Results
  • She added that Walmart Inc. WMT and Target Corp TGT had not noted problems with toy inventory being too high.
  • Weiser thinks American Girl should perform better in 2H22, as more new products are planned.
  • Listing out the risks, she said the toy industry is highly competitive with low barriers to entry, making it difficult for the company to achieve, maintain, or build upon its successful brands and products.
  • Price Action: MAT shares are trading lower by 0.13% at $23.49 on the last check Wednesday.
  • Photo Via Company
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