In a report released yesterday, Alexander Perry from Bank of America Securities reiterated a Buy rating on Mattel (MAT – Research Report), with a price target of $28.00.
Alexander Perry has given his Buy rating due to a combination of factors that highlight Mattel’s positive financial outlook. The company reported a better-than-expected adjusted EPS for the first quarter, driven by improved gross margins resulting from lower inventory costs and successful cost-saving initiatives. Despite some inflationary pressures, overall gross billings and point-of-sale figures showed growth, reinforcing confidence in the company’s financial health.
Furthermore, while there are challenges such as direct import headwinds and tariff impacts, Mattel is actively addressing these through cost-saving measures and supply chain diversification. The company is expected to offset the tariff costs and maintain its earnings estimates, with no significant changes in consumer buying behavior. This strategic approach, combined with potential market share gains due to its robust supply chain compared to smaller competitors, supports the Buy rating with a price objective of $28.
MAT’s price has also changed moderately for the past six months – from $20.210 to $16.200, which is a -19.84% drop .