Mattel’s Strong Market Position and Reduced Tariff Burden Make It a Compelling Buy

Analyst James Hardiman from Citi maintained a Buy rating on Mattel (MAT – Research Report) and keeping the price target at $22.00.

James Hardiman has given his Buy rating due to a combination of factors that highlight Mattel’s strong position in the market. The recent de-escalation of tariff policies by the U.S. government has significantly reduced the tariff burden on Mattel, which previously faced high tariffs due to its manufacturing operations in China. This change allows Mattel to maintain competitive pricing with only minimal price increases compared to its competitors, who may need to implement larger price hikes.
Additionally, Mattel’s diverse supply chain and manufacturing redundancy provide it with a competitive edge over other companies in the toy industry. The company’s solid margin structure supports its financial stability and growth potential. Despite the fluctuations in the market, Mattel’s strategic initiatives and optimistic outlook suggest that the company is well-positioned for future success, making it a compelling investment opportunity.

In another report released on May 6, UBS also reiterated a Buy rating on the stock with a $29.00 price target.