Mattel stock will soon become a hot commodity, according to Stifel analyst Drew Crum. In a note sent to clients on Tuesday, Crum predicts that the highly-anticipated Barbie movie is set to have a positive impact on the toy maker’s shares.
Crum estimates that Barbie movie will earn around $100 million on the domestic market in the opening week when it arrives in theaters on July 21. This could translate to an overall haul of $550 million and lead to an increase in Mattel’s sales of Barbie dolls, licensing fees, and other tie-in items.
With Mattel planning several projects related to the Barbie movie, including the release of additional film features, a strong performance at the box office could send a positive signal to investors about Mattel’s long-term strategy.
“We think a commercially successful movie could help investor confidence around this part of the company’s strategy, and thus Barbie’s performance has implications for the stock beyond just the next few days or weeks,” Crum wrote in the note.
Crum has set a $26 price target on Mattel stock compared to $21.49 per share close on Monday. The company’s shares are almost 18% up year to date and at their highest since February.