Barbie has been a mainstay brand for toymaker Mattel (NASDAQ:MAT) for decades. But with the recent Barbie movie, that mainstay has taken on a whole new and vital position as a tentpole. Mattel made great use of the Barbie franchise in its recent investor day event, which boosted shares in the closing minutes of Thursday’s trading. Indeed, Mattel plans to go in hard with the Barbie brand, bringing out new toys and an outright Barbie theme park located in Arizona.
The theme park will feature a Barbie beach house attraction along with other Mattel brands, such as two Hot Wheels-themed roller coasters. Mattel is also out to drive attention to its American Girl line, which will get some support from Disney (NYSE:DIS) with an upcoming movie.
Big and Small Developments
Granted, a new theme park is a major ask these days. With the economy not exactly in great shape and inflation still running rampant, the idea that many parents will be willing to take their kids to a Barbie-themed amusement park—especially over a summer vacation—in Arizona is a long shot. However, Mattel has more mundane ambitions as well; it’s poised to work with developers of all sizes on Mattel-themed video games. Eager to grow its presence in the digital gaming market, Mattel looks to bring out one branded game per year.
Is Mattel a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on MAT stock based on five Buys and four Holds assigned in the past three months, as indicated by the graphic below. After an 11.42% rally in its share price over the past year, the average MAT price target of $22 per share implies 12.36% upside potential.
