Goldman Sachs Resumes Hasbro (HAS) at Buy, Mattel (MAT) at Neutral

Goldman Sachs resumed coverage on Hasbro (NASDAQ: HAS) with a Buy rating and a price target of $70.00. Mattel Inc. (NASDAQ: MAT) was resumed at Neutral with a price target of $29.

Analyst Taposh Bari said, "Our work suggests that the toy industry has, over time, proven adaptive to change with a history of strong returns, generous dividends and disciplined M&A strategies. While the threat of technology displacing traditional toys is real, EBITDA at Mattel, Hasbro and LEGO has combined to grow 15% per year since the launch of the iPhone. This suggests that toys have a place in a world that is increasingly mobile and digital."

"We recommend HAS for its direct exposure to a diversified content pipeline including Transformers, Marvel, Star Wars and Disney Princess/Frozen (beginning in 2016). Moreover, HAS appears best suited to capitalize on the growing convergence of content and consumer products through its toy expertise, owned IP and growing partnership with Disney," continued the analyst.

"We believe it’s too early to make a mean-reversion case at MAT as Monster High’s revenue floor remains unclear and the Disney Princess loss leaves a notable revenue void beginning in 2016. While the return of Richard Dixon to the company as Chief Brand Officer and DC Comics license create compelling catalysts, we believe the direction of the stock will ultimately be dictated by improving trends in Barbie and Fisher-Price, properties we consider to be mature share donors in highly competitive categories," he added.

For an analyst ratings summary and ratings history on Hasbro click here. For more ratings news on Hasbro click here.

Shares of Hasbro closed at $56.51 yesterday.

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