Post by
savinfamily on Jul 11, 2011 2:52pm
What Gerrick L. Johnson said today, 2011/ 07 / 11
The "blockbusters" in the summer do not disappoint moviegoers only: toy manufacturers, too, may be disappointed by the lukewarm receptionreceived by the film-generating products, warns Gerrick L. Johnson, an analyst at BMO Capital Markets.
Turn 3, Green Lantern, Kung Fu Panda 2 and Pirates of the Caribbean 4have all missed the target of investors and analysts, notes Mr. Johnson. Toy manufacturers were betting on derivatives of these productions, but it seems that consumers do not rueront to toy retailers this summer, he anticipates.
In addition to film, and inventories are higher priority for the players of the sector is to sell their stocks at the expense of putting-in-market newproducts, he noted.
Mr. Johnson then revised downward its forecast. Sales in the United States should remain flat in 2011 rather than the 2% growth originally expected.
The analyst encourages investors to take advantage of a possible withdrawal of securities to invest in the Montreal-based Mega Brands. The analyst issues a recommendation "outperform" and a target of $ 20.
For industry giants, Johnson believes that as Hasbro is likely to be abusedand recommends that investors avoid the short term. He considers the action of the manufacturer of Monopoly overvalued. It makes a recommendation "market performance" and a target of U.S. $ 40.
The analyst is more optimistic with a recommendation for Mattel"outperform" and a target of U.S. $ 32. The maker of Barbie is the beginning of a growth cycle in its most popular brands, he said.