Hasbro (NASDAQ:HAS) was cut to Neutral from Buy at BofA on Friday, with analysts lowering the stock price target to $53 from $90 per share.
Analysts said the company's Baldur's Gate and Monopoly Go games are not enough to offset the decline in toys.
"We're downgrading Hasbro to Neutral following the company's 3Q earnings results," wrote the analysts. "We had recently upgraded Hasbro to Buy given our expectation for a strong beat in the Wizards segment (WOTC) on the back of its Lord of the Rings Magic set and royalty revenue from Baldur's Gate 3 and Monopoly Go."
"HAS did report very strong 3Q WOTC revenue (+38% YoY vs. consensus +26%), but unfortunately, its Consumer Products (CP) sales declined 19% YoY, well below our -13% estimate and consensus -5%," they explained.
The analysts also said the company did not raise its guidance as the investment bank had expected. In addition, they "remain bullish on Tim Kilpin’s ability to turn around HAS’ toy business" but said, "recent commentary suggests this may happen more in 2025."