Lehman Brothers Cuts Opinion on Mattel

The analyst had upgraded the stock back on February 17, following a very bullish meeting with the company management. Since then, Mattel has continued posting disappointing results.

Lehman Brothers cut its investment opinion on Mattel (MAT ) to underweight from equal-weight, citing the company's quarterly results.

Analyst Felicia Kantor Hendrix says she had forecast 64 cents earnings per share for the third quarter. She had upgraded the stock back on February 17 following a very bullish meeting with the company management. However, since then, Mattel has continued to post disappointing results driven by both top line (mainly due to continued Barbie declines), and higher expenses. In this high-cost, competitive environment, she does not see Mattel's performance improving. She says her $20 target is under review and will be re-addressed following the conference call this morning.

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