Mattel Inc (NASDAQ: MAT) announced Thursday
that Margo Georgiadis was stepping down as CEO and would be replaced by Ynon Kreiz.
The pressure on Mattel and other toy manufacturers has increased since the
liquidation
of Toys ‘R’ Us.
Stifel: 'Mixed' Reaction
“Our initial take on this news is mixed,” Stifel's Drew Crum said in a Friday note.
“It could serve as a read on the progress (or lack thereof) being made on the company's turnaround strategy, and thus
frustration on the part of Ms. Georgiadis.”
The leadership change could renew optimism, especially given Kreiz’s extensive experience in media and entertainment sectors,
the analyst said.
Kreiz previously served as chairman and CEO of Maker Studios and Fox Kids Europe, both of which he sold to Walt Disney
Co (NYSE: DIS). He also served as a general partner at
Balderton Capital, a London-based VC firm focusing on early-stage technology and internet startups.
This leadership change could also signify an opportunity for Mattel to shift its focus towards entertainment, Global Toy Experts
CEO Richard Gottlieb was
quoted as saying in Reuters.
“It appears that the Mattel board is betting that Kreiz, with his history in entertainment, can turn things around."
Price Action
Mattel shares were down 3.79 percent at $12.94 at the time of publication Friday.
Related Links:
Assessing
The Toys 'R' Us Liquidation's Impacts On Hasbro, Mattel and JAKKS
What
Toys 'R' Us US Liquidation Means For Toy Makers
Photo courtesy of Mattel.
Latest Ratings for MAT
Date |
Firm |
Action |
From |
To |
Apr 2018 |
Jefferies |
Upgrades |
Underperform |
Hold |
Apr 2018 |
Stifel Nicolaus |
Maintains |
Hold |
Hold |
Mar 2018 |
UBS |
Maintains |
Buy |
Buy |
View More Analyst Ratings for
MAT
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