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Mattel and Hasbro: Analysts’ Recommendations

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Dec. 4 2020, Updated 10:53 a.m. ET

Mattel and Hasbro

As of July 3, of the 15 analysts covering Mattel (MAT) stock, 67% recommended a “hold,” 20% recommended a “buy,” and 13% recommended a “sell.”

In the past 30 days, there have been quite a few changes in the target price and ratings for Mattel stock. On June 28, D.A. Davidson cut the rating on the stock to “underperform” from “neutral.” On June 19, UBS slashed the rating on the stock to “neutral” from “buy.” However, UBS raised the target price for Mattel stock to $18.00 from $17.00 projected earlier. On June 15, Citigroup raised the target price to $21.00 from $20.00 earlier.

Currently, analysts’ 12-month average target price for Mattel is $15.75, which reflects a 5.3% downside to its price on July 3.

For Hasbro (HAS), of the 15 analysts covering the stock, 60% recommended a “buy,” while 40% recommended a “hold.”

There hasn’t been any price revision activity for Hasbro stock in the past 30 days. Currently, analysts’ 12-month average target price for Hasbro is $98.64, which reflects a 5.9% downside to its price on July 3.

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What lies ahead?

For Mattel, the underperformance of Toy Brands, American Girl, and Fisher-Price and rising freight and distribution costs are additional concerns. In April, CEO Margaret Georgiadis stepped down from her role after only 14 months, which sent investors into a tizzy. Ynon Kreiz is Mattel’s current CEO. Mattel has stopped paying dividends. The company is using the funds for growth investments.

In the second quarter, Mattel’s sales are expected to fall 12.3%. Management has guided to lower the revenue in the second quarter due to tough comparisons with the Cars 3 launch in the same quarter last year.

Hasbro is expanding overseas and acquiring new properties like Power Rangers. Hasbro has partnered with Activision Blizzard to become the exclusive licensee for Activision Blizzard’s video game Overwatch. For the second quarter, Hasbro’s sales are expected to fall 13% mainly due to Toys “R” Us closing.

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