Analyst: Don't Buy the Hype on Mattel Stock

Mattel Inc (NASDAQ:MAT) stock is 1.7% lower premarket, after J.P. Morgan Securities downgraded the toymaker to "neutral" from "overweight." According to the analyst, the toymaker's tailwinds from the "Barbie" movie were overblown, while weak 2023 holiday sales and higher freight costs will weigh on MAT going forward.

Despite a fractional year-to-date lead and a nearly 11% year-over-year deficit, the majority of analysts are optimistic; eight of the 11 in coverage call Mattel stock a "strong buy." Plus, the 12-month consensus price target of $22.55 is an 18.6% premium to Friday's close. All of this leaves the equity open to more downgrades and/or price-target cuts going forward.

Since a July 27 annual high of $22.64, the shares have carved out a channel of lower lows. Now, MAT is set to erase some of Friday's 4.1% gain -- its best single-session performance since November 2023. What's more, Mattel stock is on track to breach its year-to-date breakeven mark, and open below recently reclaimed support at its 40-day moving average -- a historically significant trendline. 

Where should you invest $1,000 right now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

7 Energy Stocks to Buy and Hold Forever

Do you expect the global demand for energy to shrink?! If not, it's time to take a look at how energy stocks can play a part in your portfolio.

Get This Free Report