Mattel's Near Term Outlook Looks Attractive Amid Toy Industry Challenges: Analyst
Portfolio Pulse from Shivani Kumaresan
D.A. Davidson analyst Linda Bolton Weiser maintains a Buy rating on Mattel Inc (NASDAQ:MAT) with a $25 price target, citing a positive near-term outlook despite challenges in the toy industry. The industry faces low barriers to entry and rapidly changing consumer interests, making it difficult for companies to maintain brand success. Mattel's performance is heavily reliant on holiday season sales. The analyst expects Mattel's 4Q23E sales to grow over 20% Y/Y and notes the company's raised FY23 adjusted EPS guidance to $1.15 - $1.25. Mattel's stock is currently trading slightly lower.
December 27, 2023 | 6:45 pm
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POSITIVE IMPACT
Mattel Inc is expected to have a positive near-term outlook with a projected 4Q23E sales growth of over 20% Y/Y, and an analyst has reiterated a Buy rating with a $25 price target.
The reiteration of a Buy rating and a price target that is significantly higher than the current trading price suggests a strong positive sentiment from the analyst. The expected sales growth for the fourth quarter also supports a bullish outlook. However, the overall challenging environment in the toy industry and reliance on holiday sales temper the impact slightly.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100