Goldman Sachs downgraded Mattel Inc. (NASDAQ: MAT) from Neutral to Sell. The investment bank set a new price target of $12.00.
Analysts cited mounting execution risks and operational complexity over the next 6 to 12 months. The firm noted a volatile geopolitical and consumer environment for the toy maker.
Competitive pressures and challenges in new trading card and video game initiatives remain key concerns. Muted performance for the Masters of the Universe content and app-based game reduced visibility on investment returns.
Mattel shares declined in pre-market trading following the downgrade. Goldman Sachs expects shares to remain range-bound or lower. The bank warned of downside risk to estimates and valuation until performance stabilizes.