In a report released today, Megan Alexander from Morgan Stanley maintained a Hold rating on Mattel, with a price target of $21.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Megan Alexander has given her Hold rating due to a combination of factors impacting Mattel’s financial outlook. The company reported a solid earnings per share (EPS) beat for the second quarter, primarily driven by a gross margin improvement that offset weaker sales trends. However, the full-year guidance was adjusted downward, with the midpoint of the updated EPS range approximately 5% below the previous outlook and about 3% below current consensus estimates.
Despite positive point-of-sale (POS) commentary indicating growth in all regions, there is some uncertainty regarding the timing of recovering the second-quarter sales shortfall, which may extend into the next year. Additionally, the company’s revised operating profit and EPS outlooks reflect a conservative stance, potentially leading to modest stock price declines. These elements, combined with external factors such as tariff-related uncertainties and changes in retailer ordering patterns, contribute to a cautious outlook, justifying the Hold rating.
In another report released today, Roth MKM also maintained a Hold rating on the stock with a $22.00 price target.