People don’t think of toys so much in July. Maybe a few squirt guns and the insatiable thirst by youngsters for interactive figurines like Skylanders. But come fall and toys will flare up again, riding the ever-longer Christmas shopping wave. By then Mattel — which rebuilding itself under the radar now — should be in tremendous position for growth.
Goldman Sachs’ David Kostin put Mattel on his list of 40 stocks that look good for the second half of 2015. And Business Insider, working off Kostin’s list, pegs Mattel’s upside to target at 44%. Mattel stock languishes around $25-$26. CEO Christopher Sinclair cites strong performance by Mattel brands Barbie and Fisher-Price as a harbinger for better overall performance by the company. In April Sinclair said, “The Board and management team are focused on achieving a rapid turnaround at Mattel and we have a clear game plan for what needs to be addressed. This Company has a powerful portfolio of global lifestyle brands with untapped IP potential, extraordinary toy design and development expertise and unmatched global sales and supply chain capabilities.”
