1351 ET - Target's positive comments about holiday sales for toys and beauty products support Mattel and e.l.f. Beauty, says D.A. Davidson in a research note. For the combined November and December period, Target grew total sales by nearly 3% and called out toys and beauty amid stronger discretionary spending. The analysts note that Mattel is the better play on toys as Hasbro's business is now more heavily weighted towards gaming. E.l.f, their top pick in the beauty space, meanwhile had 25% of its sales go to Target in FY24. The analysts believe the cosmetics company can report another beat-and-raise quarter in February. Mattel shares are flat, while e.l.f. is up 4.8% to $134.52. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
January 16, 2025 13:51 ET (18:51 GMT)
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