Citibank took us on a tour of the toy aisle today–and came away feeling OK about toy giants Mattel (MAT) and Hasbro (HAS).
Associated Press Hasbro’s My Little Pony With the holiday season on the horizon, analyst Gregory Badishkanian writes that despite some obstacles each company faces, investors can have their cake and eat it too regarding these two companies…depending on what they're looking for. Badishkanian writes:
We believe that Hasbro is better positioned in the near-term and should see a major benefit from the 2015 theatrical releases of The Avengers 2 and Star Wars. While recent results have been disappointing at Mattel, we believe the company's stable of best-in-class brands, a potential Fisher Price turnaround in 2015 and recent MEGA Brands acquisition provide compelling upside for patient investors in a stock that is currently yielding 4.9%.
As Badishkanian notes, life has been tougher for Mattel. Not only have its results disappointed, but it also lost Disney's (DIS) Princess dolls as well. Still, Badishkanian continues to believe Mattel has plenty of upside:
Mattel likely faces a challenging 2014 but should see improvement in 2015. We believe the ongoing integration of MEGA Brands represents an important opportunity to create a viable number-two player in the construction aisle.
Mattel is down 3% at $30.60 at 3:46 p.m., while Hasbro is off 1% at $54.94.
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