Mattel downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Mattel to Neutral from Overweight with a price target of $19, down from $24. The analyst says weak 2023 industry holiday sales are expected as the leisure category remains under pressure, setting a lower base to build from in 2024. Data indicates the toy category will face ongoing share of wallet headwinds with recent readings showing wallet share still over 20% above pre-COVID trends, the analyst tells investors in a research note. For Mattel, JPMorgan thinks Barbie provided a significant boost to results in mid-to-late 2023, “but the duration proved unexpectedly short and the lap creates difficult comparisons plus a significant wall of worry for investors.”