Rating summary
Since Mattel’s (MAT) second-quarter earnings announcement, most analysts have rated it as a “hold.” Of the 15 analysts covering the stock, 67% have rated it as a “hold,” and 20% have rated it as a “buy.”
Following the announcement, we’ve seen no price revision activities, but we expect some in the coming days. Currently, analysts’ 12-month average target price for MAT stock is $15.46, which reflects a 0.9% downside to its stock price on July 26.
In comparison, 53% of the 15 analysts covering Hasbro (HAS) have recommended “buys” on its stock, while 40% have rated it as a “hold.” Following its earnings announcement on July 23, several analysts, including BMO and D.A. Davidson, raised their price targets for HAS. On July 24, BMO raised its price target to $85 from $75, and D.A. Davidson raised its price target to $124 from $113. Analysts’ 12-month average target price for HAS stock is $106.46, a 5.6% upside to its stock price on July 26.
Of the five analysts covering Jakks Pacific (JAKK) stock, 80% have rated it as a “hold,” while the remaining analysts have rated it as a “buy.” The 12-month average target price for JAKK stock is $2.45, which reflects a 2.1% upside as of July 26.
For Take-Two Interactive (TTWO), 80% of the 20 analysts covering the stock have given it “buy” ratings. The remaining analysts have rated it as a “hold.” The 12-month average target price for TTWO stock is $132.35, which reflects a 5.6% upside as of July 26.
Second-quarter snippets
Mattel’s net sales of $840.7 million missed analysts’ estimate of $851.8 million while falling ~14% YoY. The company’s second-quarter adjusted EPS of -$0.56 came in much lower than the consensus estimate of -$0.30 and the EPS of -$0.14 it reported in the corresponding quarter last year.
The company expects to be negatively affected in the near term by the Toys “R” Us bankruptcy and soft business trends in China. Unfavorable foreign exchange movements are also likely to add to its woes.
Mattel is focusing on newer products as well as the enhancement of its digital sales channel to grow its sales. The company remains focused on stepping up its marketing efforts for its brands, including Fisher-Price, Barbie, American Girl, and Hot Wheels.