Mattel, Inc. (NASDAQ:MAT)

* The most tenant for our long-term perspective on Mattel is that “worst of it” is largely behind their industry

* The evolving macro-environment remains a key risk factor, however the developing trend in revamping supply chains closer to the customer & point of sale is a promising tailwind
- Mattel consolidated manufacturing facilities in Mexico within the past couple years and management has been proactive.

* More than a toy company: Leveraging IP to capture market share of the growing digital ecosystems
- Proprietary ownership & development of new IP and it’s ability to gain consumer traction
- Ability for digital content creation to capture the mindshare of their target demographic (viewership ratings for tv series, movies, video games, etc.)
- Popular franchise brands are already in production for movies and TV series that are going to be widely available on the growing thematic trend of content streaming.

* Reopening, generational “baby boom” and it’s correlation with the increased housing demand
- The age demographic of younger couples buying homes is likely to correlate with the life decision to start raising families
- Revival of the industry’s target demographic & TAM

* “Smart” toy demand for childhood development.
- This is going to be huge for conscious parents buying toys that provide educational and developmental value for this children.

* The consumer market extends beyond just family buying toys for their children/relatives as gifts.
- “Curriculum-based” daycare providers to become a larger part of the direct-to-consumer ecosystem.
- Toymakers are able to capitalize upon this by designing toys to meet the developmental standards of their end customers.

* High institutional ownership
- Attractive turnaround story with incredible momentum backed by positive EPS estimate revisions
- Could largely be interpreted that institutional investors see the opportunity over the horizon and are invested in capitalizing upon the growing trends for the long haul

* Mattel’s brand reputation has drastically transformed into being an ESG leader.
- Environmentally friendly manufacturing and production roadmap for “going green”
- The recent announcement about their toy recycling program aims to not only be green, but greatly address inflationary pressures in regards to the companies input costs for manufacturing toys.
- Products marketing educational value for sustainability practices for target demographics in ages within key developmental stages
- Better to handling of liability regarding recalls of popular products

* Banks raising price targets as goodwill for cashing in on a larger commercial relationship.

Still beaten down from the COVD selloff, the stock still has good long-term prospects through its power brands.