Analyst Picks & Pans February 1, 2010, 11:25AM EST

Stock Picks: Comcast, Mattel

Plus Wall Street analyst opinions on Comerica and ITT Educational Services

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Kaufman Bros. reiterates hold

Kaufman Bros. analyst Todd Mitchell said on Feb. 1 that he looked for cable operator Comcast to report "muted" quarterly results on Feb. 3, against "surprisingly strong" comparisons one year earlier. Mitchell said in a note that he thinks Comcast will issue guidance for total revenue and EBITDA growth in 2010 of 3% to 5%, "pretty much in line" with 2009 results.

"Moreover, whereas 2009 got progressively worse over the four quarters of the year,

2010 should be progressively stronger," he wrote. The analyst expects Comcast's capital expenses will fall again in 2010 for another year of "solid" gains in free cash flow.

With the company's planned acquisition of a controlling stake in NBC Universal likely to take nine more months to close, Mitchell said he thinks investor capital "is best deployed elsewhere".

"NBC's tail is wagging Comcast's dog, as Comcast's valuation becomes increasingly dictated by sentiment on NBCU," he wrote.

The analyst has a $17 price target on the shares.

Mattel Inc. (MAT)

Caris & Co. upgrades to buy from hold; raises estimates, price target

Caris & Co. analyst Linda Bolton Weiser upgrades her rating on shares of Mattel, the world's biggest toymaker, on Feb. 1. In a note, Weiser said a 2% decline in the shares on Jan. 29, after the company released strong fourth-quarter results, was "overdone". The decline provided investors an entry point into the stock "ahead of two years of double-digit EPS growth", she wrote.

Weiser noted that Mattel had not had higher than 2% organic local currency sales growth since 2006, but she projected "at least" 4%-5% growth in 2010 and 2011, driven by a return to growth for the company's Barbie franchise and revenue from products tied to several "sizable" movie licenses.

The analyst raised her 2010 earnings per share (EPS) estimate by 14 cents to $1.59, her 2011 EPS projection by 15 cents to $1.75, and her price target to $26 from $24.