Analyst: investors to pay attention to toy makers

NEW YORK

With new toys starting to roll out at retailers such as Target Corp., investors may start to pay more attention to toy stocks, an analyst said Tuesday.

THE OPINION: BMO Capital Markets analyst Gerrick Johnson rates the toy sector at "Outperform." He said Wal-Mart Stores Inc.'s pricing is less competitive than it was last year, with prices just 1 percent below Target Corp.'s and 2 percent below Toys R Us.

Meanwhile, European toy sales in the first half of the year were up in the low to mid-single digits in major markets.

As for big, popular toys this season, Johnson suspects the new toy hit could be Squinkies from Blip Toys. The squishy toys geared for younger kids come in bubble packs and have many sets.

Brands that gained the most year-over-year shelf space include Hasbro Inc.'s Nerf, Mattel Inc.'s Hot Wheels cars and World Wrestling Entertainment Inc., among others. Brands that lost space include Hasbro's Transformers and Bakugan by Spin Master.

THE STOCK: Shares of Mattel Inc. fell 23 cents to $21.32 in afternoon trading while shares of Hasbro fell 74 cents to $41.45.