JPMorgan Slashes Mattel, Inc. (MAT)'s Price Target After Revenue and Earnings Miss

Mattel, Inc. (NASDAQ:MAT) is among the 13 Most Undervalued Stocks Under $20 to Buy. On October 27, JPMorgan’s Christopher Horvers slashed his price target on the stock to $23 from $25, while keeping a Neutral rating on its shares.

The adjustment followed the company’s third-quarter earnings results on October 21, which missed Wall Street’s estimates for both revenue and profit, as tariffs took a toll on its sales in North America.

The Barbie-maker posted net sales of $1.74 billion, down 6% year-over-year and falling shy of expectations of $1.83 billion. The company’s net income stood at $278 million, down $94 million from the prior year’s period. EPS was reported at $0.89 EPS, missing estimates of $1.05.

In a research note to investors, the JPMorgan analyst said that Mattel, Inc. (NASDAQ:MAT) missed revenue estimates for the third quarter as retailers shifted towards domestic shipping from direct imports. However, the company was poised for a strong finish to the fiscal year amid efficient inventory management and growth in orders from U.S. retailers since the start of Q4.

During the earnings call, Mattel, Inc. (NASDAQ:MAT)’s Chairman and CEO, Ynon Kreiz, said that despite a challenging third quarter, the company’s fundamentals remain healthy and orders are now beginning to pick up significantly again. Moreover, the toy manufacturer remains on track to meet its full-year guidance for 2025.

Mattel, Inc. (NASDAQ:MAT) is a toy and family entertainment company that owns several leading brands, such as Barbie, American Girl, Hot Wheels, UNO, and others.

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