Mattel (MAT) is positioned "better than expected" to navigate the full impact of tariffs this year, UBS Securities said in a Monday note.
UBS analysts said they believe the toymaker is "best positioned to gain incremental shelf space into 2025 holiday season," due to its capacity to "provide uninterrupted supply," and since most of the industry consists of small and medium-sized businesses that may have 100% exposure to China, which may need to boost prices "substantially" in order to remain operative.
The investment firm said Mattel is looking to mitigate the impact of tariffs through efforts that include transitioning out of China and optimizing sourcing and product mix.
UBS has a buy rating on the stock with a $29 price target.
Shares were up over 3% in recent Tuesday trading.
Price: 16.81, Change: +0.61, Percent Change: +3.73
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