Analyst downgrades Mattel
Analyst downgrades Mattel to 'Hold' after stock runnup, says its fairly valued
After a recent rally in Mattel's stock price, the toy maker's shares fairly reflect the company's value, said an analyst as he downgraded the company.
KeyBanc Capital Markets' Scott Hamann cut Mattel Inc. to "Hold" from "Buy."
Shares of Mattel, the world's largest toy maker responsible for brands such as Barbie and Hot Wheels, have risen 18 percent in 2013.
Mattel has done an "exceptional job" growing its business, by cutting costs and introducing popular new lines such as Monster High dolls, but that is all reflected in the current price, said Hamann.
Toy makers are facing a difficult environment, with retailers being cautious in ordering inventory and continued high labor and material costs. Mattel has done better than its rivals. In its most recent fiscal year net income edged up 1 percent to $776.5 million. Revenue increased 2 percent to $6.42 billion.
Mattel shares slipped 64 cents, or 1.5 percent, to close at $42.64. That's closer to the high end of its 52-week trading range of $30.15 to $44.25.
