What Do Analysts Suggest for Mattel Stock?
Analysts remain neutral
Most of the analysts providing recommendations on Mattel (MAT) maintained a neutral outlook on the stock. Industry-wide challenges stemming from the shift in demand toward digital entertainment and top-line pressure from Toys “R” Us filing for bankruptcy hurt the company’s financials. Losing the key licensing deal with Disney (DIS) and increased competition from Hasbro (HAS) are making things worse.
Mattel’s sales took a hit during the last reported quarter. The tough retail landscape and Toys “R” Us filing for bankruptcy impacted its North American business. Lower licensing income and higher costs took a toll on Mattel’s margins.
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Going forward, Mattel’s sales are expected to remain low because the impact from Toys “R” Us filing for bankruptcy will likely linger. Analysts expect the company’s top line to fall 6.7% in 2017. Mattel’s EPS (earnings per share) is also expected to fall.
About 64.0% of the analysts recommended a “hold” rating on Mattel stock, while 36.0% recommended a “buy.” Mattel stock closed at $17.64 on November 13, 2017, which is 13.8% above analysts’ target price of $15.21 per share.
Notably, several analysts lowered their target price on Mattel stock following the company’s sluggish 3Q17 results. UBS lowered its target price to $18 from $22. Meanwhile, BMO reduced its target price $20 from $23. Stifel lowered its target price to $14 from $17.
In comparison, 50.0% of the analysts provided a “buy” recommendation on Hasbro stock, while an equal number of analysts maintained a “hold” rating.