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Mattel Inc (NASDAQ:MAT). shares tumbled to a 52-week low of $14.06, reflecting a challenging period for the toy manufacturer as it grapples with shifting consumer trends and operational headwinds. Despite the recent decline, the company maintains solid fundamentals with an EBITDA of $902 million and a healthy current ratio of 2.38. According to InvestingPro analysis, the stock appears undervalued at current levels. The stock's descent to this level marks a significant downturn from its performance over the past year, with the company witnessing a 1-year change of -23.66%. Trading at a P/E ratio of 8.99x, the company remains profitable with analyst targets suggesting significant upside potential. Investors are closely monitoring Mattel's strategy to navigate through the current retail environment, as the company aims to revitalize its brand portfolio and improve its market position. InvestingPro has identified 12 additional investment tips for Mattel, available exclusively to subscribers through their comprehensive Pro Research Report.
In other recent news, Mattel has announced significant developments that may interest investors. The toy company reported a strong fourth-quarter performance in 2024, with sales increasing by 3% and operating profit growing by 10%. Analysts at UBS responded by raising their price target for Mattel to $29, citing a fiscal year 2025 earnings guidance that exceeded expectations. Similarly, DA Davidson increased their price target to $30, noting the company's robust execution strategy and plans for substantial share repurchases in 2025. CFRA also upgraded Mattel's stock from Hold to Buy, raising the price target to $26, reflecting confidence in Mattel's growth potential and a $600 million buyback program.
Additionally, Mattel has secured a multi-year global licensing agreement with Disney (NYSE:DIS) to continue producing Toy Story-themed toys, coinciding with the franchise's upcoming fifth installment. The company also entered into a licensing agreement with Warner Bros. Discovery (NASDAQ:WBD) Global Consumer Products to develop products inspired by DC's universe, starting in 2026. These partnerships build on Mattel's strategy to leverage iconic brands and expand its product offerings. Overall, these recent developments highlight Mattel's strategic moves to enhance its market position and capitalize on popular entertainment franchises.
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