The “Barbie” movie is likely to drive profits for Mattel Inc., the owner of the famed doll's brand, up until the holiday season, one analyst said Friday as the anticipated film hit theatres.
 
Mattel's stock was already up 19 per cent this year as the run-up to the release of ‘Barbie’ has come with countless brand partnerships that will ultimately keep Barbie in the spotlight until December, Jaime Katz, senior equity analyst at Morningstar, told BNN Bloomberg on Friday. 
 
“There are partnerships here that should continue to benefit (Mattel) probably through the holiday season residually stemming from this movie," she said. 
 
Katz pointed to Barbie ice cream, Barbie's Gap collection and Barbie Crocs as products items that have hit the market leading up to the film's release date. 
 
"All of these products add to the cultural wheelhouse of reminding consumers what Barbie is about, and why they should be interested in her, and that just creates sort of a positive momentum around the name from a brand perspective,” she said. 
 
Katz said the movie itself could add US$100 million or more to Mattel's revenue streams as the company finds ways to capitalize and monetize on the iconic Barbie brand -- a cash flow that is destined to return to shareholder hands, she added. 

Mattel's stock was at $21.34 as of Friday afternoon and Wall Street analysts remain bullish on the stock. While most analysts rate the stock a buy, the average analyst price target is $23.64 -- which may mean the bulk of the rally has already taken place.
 
Katz believes the stock is fundamentally undervalued and that it is currently trading at a 15 per cent discount. She pointed to Mattel's large portfolio of recognizable brands as one promising avenue for future growth ahead. 
 
“This (‘Barbie’ movie) provided a really nice lift to the visibility of the brand and resurrected interest in the brand,” Katz said.