Pomerantz Law Firm launched an investigation into Mattel for potential securities fraud on March 5, 2026. The probe follows Mattel's February 10 report missing net sales and operating income guidance for the full year 2025. These disappointing financial results triggered a significant decline in the company's stock price.
UBS lowered its price target for Mattel to $28 from $30 on March 5, 2026. The firm maintained a Buy rating despite the price target reduction. Analysts cited uncertainty regarding the profitability of Mattel's significant investments in digital gaming.
These expenditures are expected to negatively impact earnings per share in 2026. UBS noted that potential tailwinds from lower tariffs may be offset by unclear returns on 2026 operating expense investments.