Why Shares of Mattel Are Slumping Today

Shares of toy maker Mattel (NASDAQ: MAT) slumped on Tuesday, driven in part by an analyst note suggesting that the company is unlikely to be an acquisition target. Mattel stock tumbled last week after an abysmal third-quarter report, rebounded on Monday after an analyst talked up the prospects of a takeover, and is now heading downward once again. Shares were down about 10% at 11 a.m. EDT.

Linda Bolton Weiser, an analyst with D.A. Davidson, threw cold water on speculation that Mattel could be a viable buyout target. Weiser admits that the company has valuable consumer products brands, but she doesn't believe Mattel brands like Barbie and Hot Wheels would be appealing to an entertainment or media conglomerate. Weiser reiterated an underperform rating on the stock, along with a $12 price target.

Image source: Mattel.

Source: Fool.com