Mattel's Brand Equity Worth Far More Than Market Implies, UBS Says
Mattel's (MAT) investment case is not about just toys, but its portfolio of brand equity that is worth far more than the market currently attributes to the company, UBS said in a note Monday.The report said Mattel owns one of the most concentratedportfolios of evergreen, multi-generational family entertainment intellectual property."We believe very little of that IP has been monetized," the note said. "The toy aisle represents the floor of what this asset base can generate - not the ceiling."The note said Mattel sits at the intersection of franchise and depth of fandom and longevity of brand equity amid a re-rating of durable original IP in the global entertainment landscape."The gap between what Mattel's portfolio of brand equity is worth vs. what the market currently ascribes to it as a toy manufacturer remains...one of the most compelling valuation disconnects in the consumer and entertainment space," it said.UBS maintained its buy rating and $28 price target.Price: $14.05, Change: $+0.72, Percent Change: +5.40%
