Mattel Upgraded At Stifel On Better-than-expected Holiday Results

Mattel Inc. stock is up 6.5% in premarket trading after Stifel upgraded it to buy from hold based on the toy company's better-than-expected holiday results for its core brands, especially Barbie and Fisher-Price. Mattel reported fourth quarter 2015 earnings Monday night. The bank set a price target of $33 in a note published Tuesday. Mattel shares closed at $26.76 on Monday. Same-store sales for Mattel's core brands grew 2%, the first positive result since the fourth quarter of 2011. Stifel analysts also believe upcoming DC Entertainment licenses and the retention of Pixar licenses, including "Cars 3" in 2017, will be a boon for the company. Mattel management expects "Cars 3" licenses to generate $350 million in incremental sales. Mattel shares are up 7.2% for the past three months while the S&P is down 7.8% for the period.