Alex Kozul-Wright

Mattel stock doesn't have much road left to run, Goldman Sachs said in a downgrade of the stock.

Analyst Stephen Laszczyk downgraded shares for Mattel from Buy to Neutral, following the stock's recent outperformance. It clocked up a gain of 15% in the fourth quarter of 2025, compared with 2% for the S&P 500.

The toy maker was down 1.6% in premarket trading.

Laszczyk wrote in a research note Friday that there are several factors that could dent Mattel's near-term revenue growth. High up on the list is tariff-related price pressures. Laszczyk pointed out that U.S. import duties have not yet been "fully borne by the consumer [and] could impair demand for toys in 2026."

At the same time, he said, growth from new business initiatives such as licenses for intellectual property from toy-based films haven't moved the needle on revenue. In addition, "Mattel's self-published gaming business remains relatively small," he wrote.

Goldman also pointed out that Mattel has outperformed the S&P 500 this year, and that with "capital returns now well-appreciated," it sees limited room for gains.

Laszczyk said that regardless of the downgrade, he has stuck with his 12-month target of $21 for the stock price, reflecting that he has generally maintained his estimates of the company's financial performance.

"Our price target is based on 11.5x 2026E EPS. With shares now trading at $21, we view risk/reward as balanced," he said.

Write to Alex Kozul-Wright at alexander.kozul-wright@barrons.com

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January 09, 2026 09:23 ET (14:23 GMT)

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