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Mattel’s Strategic Partnership with Formula 1 Fuels Buy Rating Due to Strong Growth Prospects

Mattel’s Strategic Partnership with Formula 1 Fuels Buy Rating Due to Strong Growth Prospects

In a report released yesterday, Kylie Cohu from Jefferies maintained a Buy rating on Mattel (MATResearch Report), with a price target of $28.00.

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Kylie Cohu has given his Buy rating due to a combination of factors that demonstrate Mattel’s strong growth prospects. One of the key drivers is the strategic partnership between Mattel’s Hot Wheels brand and Formula 1, which is expected to significantly boost sales by 2025. By comparing the viewership figures, it is noted that Formula 1 events attract a similar audience size to the Super Bowl, with around 60-70 million viewers globally, thereby providing immense exposure and engagement potential for Hot Wheels.
Furthermore, the comparison shows that Formula 1 has approximately 1.8 times more fans worldwide than the NFL, suggesting a vast audience base that Mattel can tap into through this collaboration. This partnership positions Mattel to leverage the global popularity of Formula 1, thus enhancing its market presence and driving sustained revenue growth. Consequently, these factors collectively support the Buy rating for Mattel’s stock.

According to TipRanks, Cohu is a 2-star analyst with an average return of 0.7% and a 70.00% success rate.

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