Why Shares of Mattel Jumped Today
Shares of toy maker Mattel (NASDAQ: MAT) jumped on Tuesday, a second day of gains following reports that rival Hasbro (NASDAQ: HAS) had made a takeover offer. Neither company has commented so far, but a report from Fitch Ratings pointing out the benefits of a merger could be responsible for the additional gains. Mattel stock was up about 5% at 11:30 a.m. EST, while shares of Hasbro were down about 1%.
Fitch Ratings expects a merger between Mattel and Hasbro to yield improved negotiating power with major customers like Target, Wal-Mart, and Toys "R" Us. Those three retailers account for about 38% of sales from the two companies. Fitch also made the point that Mattel and Hasbro are strong in different areas, Mattel with girls and Hasbro with boys.
Image source: Getty Images.
Source: Fool.com
Mattel Inc. Stock
Mattel Inc. is currently one of the favorites of our community with 13 Buy predictions and no Sell predictions.
As a result the target price of 16 € shows a positive potential of 23.0% compared to the current price of 13.01 € for Mattel Inc..
