Goldman Sachs says Mattel constructive on demand, keeps Buy rating

Commenting on Mattel’s presentation at the Communacopia + Technology Conference, Goldman Sachs analyst Stephen Laszczyk says the key takeaways were that the company sounded, on net, constructive on consumer and retail demand heading into the back half of the year; management is seeing value-seeking behavior from the lower-end consumer, but feels well-positioned with those consumers with its range of product offerings with its high-quality, well-known brands; and that Mattel reiterated all of its key financial guidance and targets. The company maintained its industry outlook of lower declines in 2024 vs. 2023 supported by improvements in consumer sentiment/demand overall, resilient spending with consumers prioritizing quarterly product, and retailers leaning into the category following a normalization of inventory, the firm adds. Goldman has a Buy rating on the shares with a price target of $22. Shares of Mattel are trading about 2% higher at $18.83 following the company’s presentation.