Jefferies upgrades stock even as comeback remains elusive Risks are largely known and priced in analyst says Mattel Inc rose the most in more than two months after Jefferies LLC boosted its rating on the shares saying that the impact from Toys R Us Incs bankruptcy is already priced into the stock Cost cutting also could help improve the toymakers earnings said analyst Stephanie Wissink who upgraded her recommendation to hold from the equivalent of sell And the prospect of a takeover may help bolster the stock she said in a note to clients Still she has little hope of a fast recovery for Mattel which is expected to report its quarterly earnings sometime this month Its unclear what the market will value in the wake of the report Wissink said Near-term risks are largely known and priced in The upgrade helped send the shares as much as 72 percent to 1449 on Wednesday marking the biggest intraday gain since Feb 9 They had lost 12 percent this year through Tuesdays close battered by the bankruptcy and liquidation of Toys R Us one of its largest customers Mattel Chief Executive Officer Margo Georgiadis a veteran of Google is trying to turn around the El Segundo California-based company by revamping its product line and shaking up management But the seller of Barbie and Fisher-Price faces an uphill fight In the previous quarter Mattel posted a surprise loss and a plunge in revenue In the short term Toys R Us customers racing to use up their gift cards may provide a bit of a lift to Mattel sales Wissink said The timing of the Easter holiday season also could benefit the toy company But her confidence in Mattels recovery remains very low according to the report Wissink also expressed concern about the companys 500 million debt payment due during the first half of 2019 Mattels debt rating was downgraded last month by Moodys Investors Service which cited the disruption from the Toys R Us liquidation