Mattel Inc. (MAT): Downgrade to Sell as macro and execution risk remain elevated into second half of 2026

Research evidence excerpt

Mattel Inc. (MAT): Downgrade to Sell as macro and execution risk remain elevated into second half of 2026

Equity Research

9 July 2026 | 6:41AM EDT

Mattel Inc. (MAT): Downgrade to Sell as macro and execution risk

remain elevated into second half of 2026

We downgrade shares of Mattel from Neutral to Sell with a revised PT of $12 Stephen Laszczyk

+1(212)357-9225 |

implying ~9% downside (vs. ~10% upside potential for our Entertainment coverage stephen.laszczyk@gs.com

Goldman Sachs & Co. LLC

on average). We view Mattel as an execution story with a higher than average degree

Antares Tobelem

of operational complexity over the next six to 12 months given the need for the +1(212)357-2497 |

company to i) navigate a volatile geopolitical, macro and consumer backdrop, ii) antares.tobelem@gs.comGoldman Sachs & Co. LLC

combat competitive pressures within the toy industry, and iiI) execute against newer Danni Kennedy

investments initiatives in the trading cards, collectibles and video game space. We +1(212)902-7178danni.kennedy@gs.com|

expect shares of Mattel to trade range-bound to lower, with downside risk to both Goldman Sachs & Co. LLC

estimates and valuation, until the company can deliver more consistent proof points

across both its core business and newer adjacencies.

Our $12 price target is based on 8.0x 2027E EPS (from 10.0x prior). We lower our

EPS multiple to reflect a mark-to-market to other low growth consumer products

companies and to reflect reduced visibility into returns on investments initiatives

following muted performance around recent content releases including Masters of the

Universe and the associated app based video game released, and increased

competition more broadly in these newer categories of expansion. What would make