Mattel, Inc. (MAT) saw a significant surge in its stock price on February 5, 2025, closing at $20.84, up 15.33% from the previous day's close of $18.07. The stock opened at $21.22 and reached a high of $21.35, driven by an impressive fourth-quarter earnings report and an optimistic outlook for fiscal year 2025. Mattel reported a Q4 adjusted EPS of $0.35, surpassing the consensus estimate of $0.19, with net sales rising 2% y/y to $1.646 billion. This performance was bolstered by strong sales in the Vehicles category, including Hot Wheels, and growth in the International segment.
The positive sentiment was further fueled by Citi's upgrade of Mattel to a "Buy" with a $26 price target, citing strategic cost structure optimization and early signs of a turnaround. Additionally, Jefferies Financial Group upgraded Mattel from "hold" to "buy," raising the price target to $28.00. The company also announced plans to mitigate tariff impacts through pricing strategies and supply chain optimization, alongside expanding its digital entertainment offerings.