{"id":15494,"date":"2026-07-13T09:30:54","date_gmt":"2026-07-13T09:30:54","guid":{"rendered":"https:\/\/tradinginsightsdaily.com\/index.php\/2026\/07\/13\/goldman-sachs-turns-bearish-on-barbie-maker\/"},"modified":"2026-07-13T09:30:54","modified_gmt":"2026-07-13T09:30:54","slug":"goldman-sachs-turns-bearish-on-barbie-maker","status":"publish","type":"post","link":"https:\/\/tradinginsightsdaily.com\/index.php\/2026\/07\/13\/goldman-sachs-turns-bearish-on-barbie-maker\/","title":{"rendered":"Goldman Sachs turns bearish on Barbie maker"},"content":{"rendered":"<p><a href=\"https:\/\/www.thestreet.com\/dictionary\/w\/wall-street\" rel=\"nofollow\">Wall Street<\/a> has spent most of 2026 losing patience with <strong>Mattel<\/strong> (<a href=\"https:\/\/www.thestreet.com\/quote\/MAT\" rel=\"nofollow\">MAT<\/a>), and Goldman Sachs just made that clear.<\/p>\n<p>The firm <strong>downgraded<\/strong> the toy giant to its <strong>lowest rating<\/strong> and set a price target below where the stock currently trades.\u00a0<\/p>\n<p>For the company behind <strong>Barbie<\/strong> and <strong>Hot Wheels<\/strong>, this is a tough verdict.<\/p>\n<p>The call lands at a noteworthy moment. Mattel shares are already trading close to their <strong>weakest level in years<\/strong>.<\/p>\n<p>Therefore, a <strong>fresh warning<\/strong> from Goldman Sachs carries more weight for anyone still holding the stock.<\/p>\n<h2>What Goldman Sachs said in its Mattel downgrade<\/h2>\n<p>On July 9, Goldman Sachs cut Mattel to <strong>sell<\/strong><strong>from<\/strong><strong>neutral<\/strong> and lowered its 12-month price target to <strong>$12 from $15<\/strong>, <a href=\"https:\/\/ng.investing.com\/news\/stock-market-news\/goldman-sachs-downgrades-mattel-stock-rating-to-sell-on-execution-concerns-93CH-2592922\">Investing.com<\/a> reported.<\/p>\n<p>A sell rating from a bank of Goldman&#8217;s size is rare, and it tells investors the firm sees more room to fall than to rise from here.<\/p>\n<p>Analyst <a href=\"https:\/\/www.tipranks.com\/experts\/analysts\/stephen-laszczyk\">Stephen Laszczyk<\/a> called Mattel a <strong>hard company to run<\/strong> over the next six to 12 months, with more moving parts than most.<\/p>\n<figure><figcaption>Mattel&#8217;s core brands still sell, but Wall Street wants proof that its newer bets can pay off.<\/p>\n<p><a href=\"https:\/\/www.gettyimages.com\/detail\/1446048661\">JHVEPhoto &amp;sol; Getty Images<\/a><\/p>\n<\/figcaption><\/figure>\n<h2>Why Goldman soured on Mattel<\/h2>\n<p>The change in rating did not come abruptly. Goldman&#8217;s view of Mattel has <strong>cooled in stages<\/strong> all year.<\/p>\n<p>The bank held a <strong>buy<\/strong> rating with a <strong>$21<\/strong> target into early 2026, then Goldman <strong>downgraded<\/strong> the stock to <strong>neutral in January<\/strong>, <a href=\"https:\/\/www.investing.com\/news\/analyst-ratings\/goldman-sachs-downgrades-mattel-stock-to-neutral-on-growth-concerns-93CH-4438734\">Investing.com<\/a> reported.\u00a0<\/p>\n<p>Goldman warned that <strong>tariffs<\/strong> and <strong>softer toy demand<\/strong> could weigh on results.<\/p>\n<h3>Three problems Goldman flagged<\/h3>\n<ul>\n<li><strong>Weak payoff from media bets<\/strong>. The muted response to Mattel&#8217;s <strong>Masters of the Universe<\/strong> content and its <strong>companion video game<\/strong> raised doubts about the return on its entertainment push.<\/li>\n<li><strong>Hard-to-execute new ventures<\/strong>. Goldman is skeptical Mattel can smoothly scale <strong>trading cards<\/strong>, <strong>high-end collectibles<\/strong>, and <strong>digital games<\/strong> all at once.<\/li>\n<li><strong>Costly market defense<\/strong>. A shaky <strong>consumer backdrop<\/strong> and <strong>aggressive pricing<\/strong> across the toy industry make it <strong>more expensive<\/strong> to protect <a href=\"https:\/\/www.thestreet.com\/dictionary\/m\/market-share\" rel=\"nofollow\">market share<\/a>.<\/li>\n<\/ul>\n<p>Goldman also reset how it values the stock, moving to <strong>8 times<\/strong> its 2027 earnings estimate from <strong>10 times<\/strong>, <a href=\"https:\/\/www.barrons.com\/articles\/mattel-stock-price-downgrade-099623c2\">Barron&#8217;s<\/a> noted.<\/p>\n<p>That shift matters. Goldman is now pricing Mattel like a <strong>slow-growth consumer products company<\/strong> rather than a premium entertainment name.<\/p>\n<p>This limits how much investors may be willing to pay.<\/p>\n<h2>How Mattel stock is holding up against the pressure<\/h2>\n<p>Mattel shares <strong>slipped about 1.7%<\/strong> in <strong>premarket trading<\/strong> after the note, adding to a decline of <strong>35% to 39%<\/strong> over the <strong>past six months<\/strong>.<\/p>\n<p>The stock now <strong>hovers near $13<\/strong>, just above a <strong>52-week low of $12.73<\/strong>, so Goldman&#8217;s $12 target implies only a <strong>single-digit<\/strong> additional decrease from here.<\/p>\n<p align=\"center\"><strong><a href=\"https:\/\/www.thestreet.com\/investing\/stocks\/nflx-stock-netflix-has-a-stunning-milestone-in-sight-for-2027\">Related: Netflix has a stunning milestone in sight for 2027<\/a><\/strong><\/p>\n<p>There is a real tension surrounding the situation. Mattel actually <strong>beat expectations<\/strong> in the <strong>first quarter<\/strong>, posting revenue of about <strong>$862 million<\/strong> against <strong>forecasts near $809 million<\/strong>, <a href=\"https:\/\/finance.yahoo.com\/markets\/stocks\/articles\/mattel-nasdaq-mat-posts-better-212047011.html\">Yahoo Finance<\/a> reported.<\/p>\n<p>Q1 sales <strong>rose about 4%,<\/strong> led by <strong>vehicles<\/strong> and <strong>newer categories<\/strong>, though tariffs and currency cut into margins.\u00a0<\/p>\n<p>However, Goldman&#8217;s concern is <strong>less about current sales<\/strong> and more about <strong>whether the<\/strong><strong>next phase of growth shows up on time<\/strong>.<\/p>\n<h2>Activist pressure adds another layer for Mattel investors<\/h2>\n<p>Goldman is not the only party pushing Mattel.\u00a0<\/p>\n<p><strong>Southeastern Asset Management<\/strong> has argued that the company would be <strong>better off sold<\/strong> to a private equity firm, rival, or media company, according to <a href=\"https:\/\/www.reuters.com\/sustainability\/sustainable-finance-reporting\/mattel-investor-asks-ceo-consider-go-private-or-sale-toy-demand-weakens-2026-05-08\/\">Reuters<\/a>.<\/p>\n<p><strong>More Retail Stocks:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.thestreet.com\/retail\/hasbro-just-made-a-bold-move-with-a-beloved-classic-blooms-by-play-doh\"><strong>Hasbro just made a bold move with a beloved classic<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/www.thestreet.com\/investing\/bank-of-america-sharkninja-stock-price-target-viral-tiktok-prime-day\"><strong>Bank of America lifts target on viral appliance stock after Prime Day<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/www.thestreet.com\/investing\/levi-strauss-stock-173-year-old-denim-giant-fashion-trend-surge\"><strong>173-year-old denim giant sees one <\/strong><\/a><strong><a href=\"https:\/\/www.thestreet.com\/investing\/levi-strauss-stock-173-year-old-denim-giant-fashion-trend-surge\">fashion <\/a><\/strong><a href=\"https:\/\/www.thestreet.com\/investing\/levi-strauss-stock-173-year-old-denim-giant-fashion-trend-surge\"><strong>trend surge 70 percent<\/strong><\/a><\/li>\n<\/ul>\n<p>For investors, that leaves two competing views. Goldman sees a company that <strong>could stumble<\/strong>.\u00a0<\/p>\n<p>Southeastern sees one <strong>worth buying<\/strong>. Either way, the second half of 2026 is when Mattel has to show which side is right.<\/p>\n<h2>What would have to change for Mattel stock to recover<\/h2>\n<p>Goldman did not rule out a <strong>turnaround<\/strong>. It named clear signs that could bring Mattel back to a more positive view.<\/p>\n<h3>Three things Goldman wants to see<\/h3>\n<ul>\n<li><strong>Barbie getting back on track<\/strong>, with the flagship brand returning to steady, predictable revenue growth.<\/li>\n<li><strong>Real proof points<\/strong>, meaning hard financial evidence that its investments in new categories are working.<\/li>\n<li><strong>Stronger content revenue<\/strong>, with television and film licensing deals delivering more than expected.<\/li>\n<\/ul>\n<p>This also serves as a watchlist for investors.<\/p>\n<p>If Mattel&#8217;s next few quarters show Barbie growing steadily and its new bets paying off, the bearish case weakens. If not, Goldman&#8217;s caution looks well placed.<\/p>\n<p>None of this is a recommendation to buy or sell. Stocks at multi-year lows can still drop or suddenly bounce, so investors should trade based on risk tolerance.<\/p>\n<p align=\"center\"><strong><a href=\"https:\/\/www.thestreet.com\/entertainment\/paramounts-warner-deal-has-a-new-650-million-problem\">Related: Paramount\u2019s Warner deal has a new $650 million problem<\/a><\/strong><\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street has spent most of 2026 losing patience with Mattel (MAT), and Goldman Sachs just made that clear. The firm downgraded the toy giant to its lowest rating and set a price target below where the stock currently trades.\u00a0 For the company behind Barbie and Hot Wheels, this is a tough verdict. The call <\/p>\n","protected":false},"author":1,"featured_media":15495,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"class_list":["post-15494","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world-news"],"_links":{"self":[{"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/posts\/15494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/comments?post=15494"}],"version-history":[{"count":0,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/posts\/15494\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/media\/15495"}],"wp:attachment":[{"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/media?parent=15494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/categories?post=15494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradinginsightsdaily.com\/index.php\/wp-json\/wp\/v2\/tags?post=15494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}