Street Calls of the Week
Investing.com - Roth/MKM has reiterated its Neutral rating and $22.00 price target on Mattel Inc. (NASDAQ:MAT), citing retail timing issues that are shifting order deliveries toward the fourth quarter of 2025. According to InvestingPro data, analysts maintain a bullish consensus on the stock, with price targets ranging from $80 to $95, suggesting potential upside. The company currently maintains a "Fair" overall financial health score of 2.18 out of 5.
The research firm noted that U.S. retailers are pushing out shelf changeovers later than normal, prompting a reduction in third-quarter estimates while raising fourth-quarter projections. Despite these timing shifts, the full-year outlook remains unchanged with projected net sales of $5.514 billion (up 2.5%) and earnings per share of $1.63 (up 0.3%). The company’s impressive gross profit margin of 63.3% demonstrates strong pricing power. For comprehensive analysis of Mattel’s financial metrics and future prospects, InvestingPro subscribers can access the detailed Pro Research Report, featuring expert insights and actionable intelligence.
Mattel’s third-quarter net sales are now expected to decline 2.5% versus a previously forecasted 2% increase, while fourth-quarter revenue growth is projected at approximately 14%, up from an earlier 9% estimate. Similarly, third-quarter EPS could fall 15% compared to a prior view of a 5% decline, while fourth-quarter EPS might increase 42% versus a previous 19% growth forecast.
The toy manufacturer remains confident in its ability to offset the full tariff cost of less than $100 million in 2025 through supply chain adjustments, materials sourcing changes, production location modifications, and selective price increases implemented at the beginning of the third quarter. These actions complement the $80 million in cost savings projected for 2025 as part of the company’s "Optimizing for Profitable Growth" plan. With a current ratio of 1.66, InvestingPro data shows the company maintains strong liquidity to support these operational changes.
Mattel recently announced a new organizational leadership team aimed at enhancing its brands and better managing franchises, including the promotion of Roberto Sanichi to the newly created position of Chief Global Brand Officer, as the company continues its evolution into a more IP-driven business with upcoming entertainment properties including Toy Story 5, Masters of the Universe, and Matchbox in 2026.
In other recent news, Hasbro has announced plans to relocate its headquarters from Rhode Island to Boston’s Seaport District by 2026. This move will involve transitioning at least 700 full-time employees to a new facility spanning 265,000 square feet. Additionally, Hasbro has expanded its collaboration with Disney Consumer Products to introduce a new PLAY-DOH collection featuring Disney Jr. characters, with initial exclusivity on Amazon through 2025. The collection includes several playsets inspired by Disney Jr.’s Mickey Mouse Clubhouse. Meanwhile, Jefferies has issued a positive outlook on Lego’s strong growth, suggesting potential benefits for Hasbro. Goldman Sachs has reiterated its Buy rating for Hasbro, maintaining a price target of $89.00, focusing on the growth prospects of the Magic the Gathering franchise. These developments indicate active strategic moves and collaborations by Hasbro in the toy and entertainment sectors.
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