(CercleFinance.com) – Bank of America renewed its purchase recommendation and its price target of $25 on Mattel shares on Friday, less than a week before the publication of the American group’s third quarter results.
In its research note, the investment bank advises investors to buy the stock because of the positive surprises that could be expected from the theatrical success of the film ‘Barbie’ and for the potential for margin appreciation in 2024.
Despite the ongoing slowdown in activity, BofA believes the toy and game maker could revise its annual targets upwards due to the success of ‘Barbie’ at the global box office.
The Wall Street firm recalls that Mattel had recently estimated the financial impact of the film at around $125 million for this year, an amount which only takes into account royalties, licensed products and figurines taken from the film.
But Bank of America judges that this favorable effect could continue until the Christmas period, at least according to its recent contacts with distributors.
Regarding 2024, the investment bank says it sees several catalysts, starting with the upcoming releases of the films ‘Wish’ and ‘Trolls 3’, the undeniable success of the ‘Monster High’ dolls, the 65th anniversary of Barbie and the opening of the Mattel Adventure theme park.
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