{"id":4682,"date":"2026-07-13T00:44:48","date_gmt":"2026-07-13T00:44:48","guid":{"rendered":"https:\/\/horizonindexadvisors.com\/index.php\/2026\/07\/13\/goldman-sachs-turns-bearish-on-barbie-maker\/"},"modified":"2026-07-13T00:44:48","modified_gmt":"2026-07-13T00:44:48","slug":"goldman-sachs-turns-bearish-on-barbie-maker","status":"publish","type":"post","link":"https:\/\/horizonindexadvisors.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&hellip;<\/p>\n","protected":false},"author":1,"featured_media":4683,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-4682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"_links":{"self":[{"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/posts\/4682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/comments?post=4682"}],"version-history":[{"count":0,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/posts\/4682\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/media\/4683"}],"wp:attachment":[{"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/media?parent=4682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/categories?post=4682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/horizonindexadvisors.com\/index.php\/wp-json\/wp\/v2\/tags?post=4682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}