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Goldman Sachs Upgrade Gives Toy Maker a Boost

Analysts are mostly bullish toward MAT

Deputy Editor
Jul 11, 2022 at 10:29 AM
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Mattel Inc (NASDAQ:MAT) is up 1.6% to trade at $23.12 at last check, after Goldman Sachs upgraded the stock to "buy" from "neutral" with a $1 price-target hike to $31. The firm praised the toy maker as a stand-out amid "increasing macroeconomic uncertainty," citing the returning Disney Princess toy license in 2023, new production innovation, and price increases. 

Earlier jumping as high as $23.87 this morning, the shares are struggling with that $24 level, having run up to it in late June as well. The 50-day moving average has also emerged as a stiff ceiling at that level as well. Year-to-date, the equity is up 8%. 

Goldman Sachs is joining an already bullish group of analysts, with six of the eight in coverage calling MAT a "strong buy," coming into today. Plus, the 12-month consensus price target of $32.27 is a 40.3% premium to current levels. 

Meanwhile, short interest represents 5.6% of the stock's available float. In other words, it would take six days to buy back these bearish bets, at MAT's average daily pace of trading. 

 

 

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