Shares of the El Segundo, CA-based toy company sold off following the market downturn last week to a level implying a near 19 cent reduction to earnings per share. UBS, however, says this calculation is exaggerated.
The toy industry "could represent a relatively attractive alternative within the broader consumer space," analysts said in a note cited by Barron's.
Companies like Mattel are historically resistant to recession, as competition within the market calls for perpetual innovation and creation of "must have" products, UBS noted.
The firm has a "buy" rating on Mattel stock.
Separately, TheStreet Ratings rates this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, TheStreet Ratings also finds weaknesses including weak operating cash flow, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: MAT
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.