Mattel Inc. (MAT) PT Lowered to $17 at Jefferies Following 2Q Miss
Jefferies lowered its price target on Mattel Inc. (NASDAQ: MAT) to $17.00 (from $19.00) while maintaining a Hold rating. Mattel's 2Q17 sales of $975M came in slightly below expectations with core sales down ex-Cars. EPS of ($0.14) was below consensus at ($0.09).
Jefferies revised the model to reflect lower core sales, Cars falling short by $50M, lower mix margins, up spend to instigate sales and higher interest on borrowings. The FY17 EPS estimate is now $0.62.