According to Bank of America, Mattel is going through a transformation and now in growth mode, this is a good time to attract shares in the toy company. Bank of America began covering Mattel with a buy rating and a $31 price target, 32 percent above where the stock closed Wednesday. Mattel has worked in recent years to better tailor its toy offerings to content, according to Bank of America. Its line of supporting content includes the live-action Barbie movie, slated for a July 2023 release, and Monster High, which will return after being discontinued in the 2010s.” also recently won back the Disney Princess toy license which we believe will be a big hit starting next year, especially with the slated release of The Little Mermaid and the Real Man movie. Snow White Cave,” Jason Haas wrote in a note Thursday. “Mattel has a strong IP library of its own and plans to release live action movies over the next few years based on its properties, from Hot Wheels and Masters of the Universe to Polly Pocket and Barney. ” Additionally, Mattel is also working to increase its gross margin, which should improve with better turpentine and shipping costs. Proving Recession Of course, the US has a weakening economic backdrop with consumers worried about an upcoming recession. According to Bank of America, while toys are not immune to an economic downturn, they tend to perform better than other types of spending. “Toys spending outperformed other tough categories during the Great Recession as parents often withdrew spending on themselves before having their children,” Haas writes. “That has proven true so far this year with spending on toys still being strongly and favorably commented on by retailers.” Hasbro also bought This is one of the reasons Bank of America is generally bullish on toys. The bank also restored Hasbro’s coverage with a buy rating and $96 price target, implying that the stock could rise another 18% from current levels. Hasbro’s content lineup also tops the market, including this year’s new “Black Panther” film, followed by “Ant-Man”, “Dungeons & Dragons”, “Guardians of the Galaxy”, “Spider-Man” “, “Transformers” and “Star Wars” the following year. — Michael Bloom of CNBC contributed to this report.