Mattel (MAT) stock surged 5.89% in Tuesday's trading session, driven by better-than-expected first-quarter results and the company's strategic plans to navigate tariff challenges. The toymaker's proactive approach to mitigating tariff impacts and positive analyst sentiment contributed to the significant stock price increase.

The company reported a strong start to the year, with revenue rising 2% (4% in constant currency) to $826.6 million, well ahead of analyst expectations of $791.5 million. Mattel's adjusted loss per share narrowed to $0.03, beating estimates of a $0.10 loss. The improved performance was attributed to the company's operational excellence and positive market reception of its products.

In response to the evolving tariff landscape, Mattel announced plans to raise prices in the U.S. "where necessary" and reduce its reliance on China for production. The company aims to lower its U.S. imports from China to less than 15% of global production by next year and less than 10% by 2027. This strategic shift has been well-received by investors, with UBS Securities noting that Mattel is "better than expected" positioned to navigate the full impact of tariffs this year.

Adding to the positive momentum, Morgan Stanley raised its price target for Mattel from $16.00 to $17.00, while Citigroup maintained its Buy rating on the stock. The company also reported a strong start to the second quarter and highlighted upcoming product releases related to "Jurassic World Rebirth," Hot Wheels, and the "Minecraft" movie, which are expected to drive future growth.