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Research Alert: CFRA Lowers Opinion On Shares Of Mattel To Hold From Buy
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Research Alert: CFRA Lowers Opinion On Shares Of Mattel To Hold From Buy
Oct 22, 2025 1:03 PM

04:00 PM EDT, 10/22/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $3 to $20, based on 12.5x our 2026 EPS estimate and below the company's three-year average forward P/E multiple of 13.2x, reflecting our view of a tough operating environment (elevated tariffs and promotions) and the declines of Dolls and Infant, Toddler & Preschool. We lower our 2025 EPS estimate by $0.10 to $1.50 and our 2026 EPS estimate by $0.10 to $1.60. MAT posted normalized FQ3 EPS of $0.89 vs $1.14, $0.17 below consensus estimates on revenues of $1.74B vs. $1.84B, $101M below estimates. By segment in FQ3, Dolls gross billings declined 11% Y/Y; Infant, Toddler & Preschool declined 25%; Vehicles increased 8%; Action Figures, Building Sets, & Games increased 11%. FQ3 adjusted gross margin compressed 290 bps Y/Y to 50.2%. The compression in gross margin was due to a negative impact from FX, higher tariff rates, inflation, and higher promotional activity. Even as management said FQ4 has started well, we have a hard time seeing growth in the coming 12 months.

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