Halister News

(Bloomberg) -- Mattel rises as much as 2% after DA Davidson analyst Linda Bolton Weiser upgraded to neutral from underperform, PT $12, saying shares have absorbed most negative fundamental developments.

• DA Davidson is "by no means turning positive" as its 4Q, 2018, and 2019 EPS estimates are still below consensus, the analyst writes in a note 
• However, Weiser views MAT’s two-year cost reduction program and plans to reduce SKUs as steps "in the right direction," and likes the "take charge" tone of new CFO Joe Euteneuer
• Sees no imminent liquidity issue; says an equity offering of ~$500m would be a good idea to reduce debt, but says the new CFO seems averse to issuing equity
• Reiterates that MAT is not likely a takeout candidate
• Shares down 53% YTD while S&P 500 is up 16%
• NOTE: Oct. 30, Mattel Can Be Looked at as Potential Acquisition Target: BMO
  • Oct. 27, Mattel Bond Spreads Blow Out 170bps After S&P Cuts to Junk
  • Oct. 27, Is Mattel’s Turnaround Plan Another ‘Head Fake’?: Street Wrap

To contact the reporter on this story: Tatiana Darie in New York at tdarie1@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Steven Fromm