Barron’s: Mattel Due for Rebound

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Shares in Mattel Inc. rebounded Monday, gaining the most since July 2006 on a report in Barron’s magazine that said the company was due for a big rebound.


Shares in the El Segundo-based toymaker gained 4.4 percent to $21.40, just one trading day after hitting a 52-week low on Nov. 2.


“The bottom is right here,” Oppenheimer analyst Linda Bolton Weiser said, of the struggling company. She added that she feels shares in Mattel could rebound as much as 50 percent over the next 12 months as parents and investors regain confidence in the company after recalls hit the company earlier this year. Shares have sunk 30 percent since May.


More than 21 million Mattel toys made in China were recalled worldwide over the past four months due to illegal lead levels and other hazards.


T. Rowe Price fund manager Ira Carnahan was quoted in the report saying he believes Mattel shares are at an attractive price.


He said the stock has a “very limited downside” and added that “it doesn’t need a sensational year, just a good year,” to be worth the investment.

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