Mattel stock maintains Buy rating at UBS amid tariff concerns

Published 24/07/2025, 16:40
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Investing.com - UBS has reiterated a Buy rating on Mattel Inc . (NASDAQ:MAT) with a price target of $29.00, despite the toy manufacturer being the most tariff-exposed company in the firm’s coverage universe. According to InvestingPro data, Mattel appears undervalued at its current price of $17.80, with analysts setting targets as high as $30.00. The stock maintains a "GOOD" financial health rating, supported by strong fundamentals.

UBS analyst Arpine Kocharyan views Mattel’s issuance of fiscal year guidance, which aligns with pre-release numbers, as a positive indicator for the second half of 2025. The company had previously pulled its guidance following the first quarter. InvestingPro data reveals that four analysts have recently revised their earnings estimates upward, with the company maintaining a healthy gross profit margin of 51.46%.

Mattel has widened its constant currency revenue growth range to 1-3% from the previous 2-3%, lowering the midpoint by 50 basis points due to macroeconomic uncertainty. The foreign exchange impact on fiscal year 2025 revenue is approximately 1 percentage point, down from 2 percentage points previously.

With first-half revenue down 2%, the full-year guidance implies second-half growth of 3%, which UBS notes is aligned with point-of-sale performance year-to-date. The company has increased its cost-saving target to $80 million from the $60 million announced in the first quarter.

The as-reported revenue guidance is now approximately flat to +2%, with both UBS estimates (+1.1%) and Wall Street consensus (+1.0%) at the lower end of that range.

In other recent news, Mattel Inc. reported its second-quarter 2025 earnings, exceeding expectations with an adjusted earnings per share (EPS) of $0.19, which was 18.75% higher than the anticipated $0.16. Despite this earnings beat, the company reported revenue of $1.02 billion, falling short of the projected $1.06 billion. This mixed financial performance highlights both positive and challenging aspects for the company. These developments are crucial for investors as they assess the company’s financial health and future prospects. The earnings results and revenue figures are vital indicators for stakeholders and analysts alike. While the stock showed some positive movement in aftermarket trading, the focus remains on the underlying financial data. Investors and analysts will continue to monitor Mattel’s performance closely in the coming quarters.

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