Goldman Sachs Downgrades Mattel to Sell, Sets $16 Target

Goldman Sachs downgraded Mattel (MAT) to "Sell," its lowest rating, and set a price target of $16 per share, below the current trading price of around $18. The downgrade follows disappointing second-quarter 2026 results from the toy giant behind Barbie and Hot Wheels.

Rating Change

The previous rating was "Neutral." The new "Sell" rating reflects a negative outlook for the stock in the near term.

Analyst Rationale

Goldman Sachs analysts believe Mattel faces structural challenges in the competitive toy industry, with weak demand for its core brands like Barbie and Hot Wheels. Despite cost-cutting efforts, the company has failed to achieve expected revenue growth.

Context

Goldman Sachs is not alone in its pessimism; several other investment banks have downgraded Mattel during 2026. MAT shares have fallen about 15% year-to-date, weighed down by slowing sales and rising raw material costs.

What to Make of It

The downgrade from Goldman Sachs signals that even the most optimistic banks have lost confidence in Mattel's near-term recovery. Investors should monitor third-quarter results and new company initiatives before making any decisions.