On Tuesday, Stifel, a full-service brokerage and investment banking firm, increased its price target on Hasbro (NASDAQ:HAS) shares to $82.00 from the previous $78.00, while keeping a Buy rating on the stock. The firm anticipates Hasbro's third-quarter results, which are set to be released on October 24, to reveal a mixed financial performance.
This expectation accounts for challenging comparisons with the same quarter last year, particularly for Wizards of the Coast (WOTC), but also recognizes positive trends in other areas of the company's business.
Hasbro, known for its diverse portfolio of toys and games, including the MONOPOLY brand, is navigating a period of stabilization for its MONOPOLY GO! product. Additionally, the company is seeing moderating declines within its Consumer Products segment. These factors, along with the implementation of further cost savings through Hasbro's Operational Excellence program, have contributed to the positive outlook from Stifel.
The firm has made slight upward revisions to its estimates for Hasbro's performance, reflecting confidence in the company's direction and potential. The updated price target and maintained Buy rating suggest that Stifel views Hasbro's stock as undervalued at its current price and a good opportunity for investors.
Hasbro's inclusion in the Stifel Select List indicates the firm's high conviction in the stock's potential for strong performance. Investors and market watchers will be looking forward to Hasbro's upcoming earnings report later this month for confirmation of the trends and financial health indicated by Stifel's analysis.
In other recent news, Hasbro's recent financial performance and strategic focus on digital offerings have garnered positive feedback from several analyst firms. Roth/MKM reiterated a 'Buy' rating on Hasbro, emphasizing the company's turnaround strategy and the shift towards digital offerings. The firm also maintained its full-year forecast for the company, despite some adjustments in revenue projections for the third quarter.
Goldman Sachs (NYSE:GS) increased its price target for Hasbro shares to $65.00 following the company's strong second quarter financial results, which surpassed expectations in terms of revenue, adjusted EBITDA, and adjusted diluted EPS. The revenue beat was largely due to higher than anticipated revenues from Hasbro's Wizards of the Coast segment.
BofA Securities raised its price target for Hasbro to $90, following strong sales of the company's new "Magic: The Gathering" Bloomburrow set. The firm also raised its third-quarter earnings per share estimate for Hasbro to $1.27, up from $1.14.
CFRA upgraded Hasbro from Hold to Buy and increased its price target to $72, emphasizing the company's continued improvement in operating margin and growth in digital gaming.
InvestingPro Insights
Recent data from InvestingPro adds depth to Stifel's optimistic outlook on Hasbro. The company's market capitalization stands at $10.11 billion, reflecting its significant presence in the toy and game industry. Despite facing challenges, Hasbro's stock has shown remarkable resilience, with a 28.93% price total return over the last three months and a 47.11% return year-to-date, aligning with Stifel's positive sentiment.
InvestingPro Tips highlight that Hasbro has maintained dividend payments for 44 consecutive years, demonstrating a commitment to shareholder returns even in challenging times. This consistency is particularly noteworthy given the company's current dividend yield of 3.86%. Additionally, analysts anticipate that Hasbro will be profitable this year, supporting Stifel's expectation of improved performance.
While the company faces headwinds, including an expected sales decline in the current year, the fact that three analysts have revised their earnings upwards for the upcoming period suggests growing confidence in Hasbro's near-term prospects. This aligns with Stifel's mixed but generally positive outlook for the upcoming Q3 results.
Investors seeking a more comprehensive analysis can access 11 additional InvestingPro Tips for Hasbro, offering a deeper understanding of the company's financial health and market position.
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