Mattel Upgraded On Barbie, Fisher-Price Turnaround

Mattel Inc. was upgraded on Monday to buy from neutral at Monness Crespi Hardt based on the mid-single-digit growth of the company's core business and the turnaround of the Barbie and Fisher-Price brands. The bank has a target price of $37 on Mattel shares. "We believe low- to mid-single digit 'core' sales growth is sustainable going forward and entertainment properties will add more than 6% to growth next year," the bank's note said. Analyst Jim Chartier believes the company's momentum has been overshadowed by "unfavorable" currency exchange, the loss of the Disney Princess license, and a "meaningful decline" in Monster High, leaving shares "underappreciated by investors. However, believes there's potential for 10% sales growth in 2017. Mattel shares are inactive in premarket trading, but up 35.6% for the past year. The S&P 500 Index is up 9.3% for the last 12 months.