In a report released today, Arpine Kocharyan from UBS maintained a Buy rating on Mattel, with a price target of $28.00.
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Arpine Kocharyan has given his Buy rating due to a combination of factors including a stronger-than-anticipated sales performance in the most recent quarter and a steady full-year outlook. While margins in Q1 lagged expectations, management maintained its gross margin target for the year, signaling confidence that cost pressures from freight, distribution, and commodities can be absorbed over time.
Additionally, the expected benefit from tariff rollbacks, which should materially support operating profit, appears only partially offset by higher logistics costs, creating room for margin recovery in the second half. Improving shipment trends, healthier retailer inventories ahead of an important film-driven product cycle, and a slightly higher non-GAAP EPS outlook support the investment case. The price target is unchanged at $28, reflecting continued conviction in upside potential from current levels.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $18.00 price target.