Both Citi and JPMorgan cut their rankings and cost targets on Mattel following its fourth-quarter revenues release. In its Q4 report, the toy producer missed on both the leading and bottom lines, providing adjusted revenues of 39 cents per share on earnings of $1.77 billion. Experts surveyed by FactSet had actually anticipated revenues of 54 cents and $1.84 billion in earnings. Mattel’s assistance likewise came well listed below Street quotes. The company sees adjusted revenues for the year can be found in between $1.18 and $1.30, while the agreement quote from FactSet was $1.77. Shares of Mattel plunged 28% in Wednesday’s premarket session. Shares are now down 4% over the previous 12 months however still trading 6% greater in 2026. MAT 5D mountain MAT 5D chart Citi reduced the stock to a neutral ranking from buy, likewise reducing its cost target to $16 from $25. This modified projection indicates possible drawback of 24%. Citi expert James Hardiman stated that while some financiers may see this pullback as a buy low chance, he is taking an action back. “The Mattel thesis has actually altered unexpectedly and considerably, with work to be done by management to tighten up the story and provide the chance,” he composed. This revenues release looks specifically destructive when thinking about competing toy producer Hasbro’s excellent quarter. “Longer-term, while the 2026 financial investments need to pay dividends down the line, the requirement for a bridge/investment year to keep some degree of development would reignite financier issues around standard toy need,” Hardiman stated. “Especially on the heels of a huge beat/raise by Hasbro previously in the day, the resilience of MAT’s portfolio is most likely to be discussed in a market that is significantly a story of haves and have nots.” JPMorgan expert Christopher Horvers reduced the stock to an underweight ranking from neutral. Horvers’ brand-new cost target of $14, decreased from $23, indicates a 34% drawback. As a factor for the downgrade, Horvers indicated Mattel’s frustrating assistance, integrated with minimal presence to product pattern enhancement in crucial brand names such as Barbie and Fisher Rate. “MAT’s outcomes are more extremely based on the core toy service, and specifically Barbie ($ 1.2 B in gross billings in 2025), which has actually suffered a hangover following a years of strong development and the legendary film in 2023,” he composed. “It’s tough for MAT to be effective broadly when this brand name suffers (down 11% in 2025 on top of a 12% decrease in 2024), with the business anticipating a smaller sized decrease in 2026 before going back to development in 2027.”
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