UBS Reaffirms Buy on Mattel at $29 Target, Sees Cost Controls Cushioning Tariff Risks

Mattel, Inc. (NASDAQ:MAT) is one of the stocks that look extremely cheap on paper. On July 24, 2025, UBS analyst Arpine Kocharyan reiterated a Buy rating on Mattel and held the $29.00 price target, despite acknowledging the company is the most tariff‑exposed name in its coverage. UBS called the reinstated fiscal‑year guidance, after a quarter of uncertainty, a “net positive,” highlighting Mattel’s ability to diversify manufacturing, offset higher costs, and maintain a strong gross margin near 51.5%.

Mattel also recently lowered its 2025 revenue and EPS guidance, trimming adjusted earnings to $1.54–$1.66 (from $1.66–$1.72) and projecting slower sales growth, amid trade uncertainty and delayed retail ordering. Still, UBS emphasized cost savings and pricing strategies are expected to blunt tariff impact through the back half of the year.

El Segundo‑based Mattel owns iconic brands like Barbie, Hot Wheels, Fisher‑Price, and American Girl, sells toys globally, and has recently consolidated its film and TV units into Mattel Studios to better monetize its content franchises.

While we acknowledge the potential of MAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.