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Investing.com - Goldman Sachs has reiterated its Buy rating on Hasbro (NASDAQ:HAS) while slightly raising its price target to $90.00 from $89.00 following the company’s third-quarter 2025 results. The stock, which has gained nearly 38% year-to-date, currently trades at $77.94, with analyst targets ranging from $80 to $100. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period.
Hasbro reported better-than-expected revenue, adjusted operating profit, and adjusted diluted earnings per share for the quarter. Following these results, the company raised its 2025 guidance for both revenue and adjusted EBITDA, driven primarily by an improved outlook for its Wizards of the Coast segment. The company maintains impressive gross profit margins of 64.56% and has shown strong financial discipline with moderate debt levels. Get deeper insights into Hasbro’s financial health metrics and more exclusive analysis with InvestingPro.
Management provided additional clarity on expenses related to its new self-publishing games business, indicating development costs for its first self-published game, Exodus, would be approximately $225 million. Despite these expenses being higher than initially anticipated, Goldman Sachs still expects the Wizards of the Coast segment to achieve high-30% adjusted operating profit margins in 2026. Notably, Hasbro maintains strong liquidity with a current ratio of 1.66, indicating its ability to meet short-term obligations while investing in growth initiatives.
The investment bank increased its 2025 projections for Hasbro’s revenue by approximately 3%, adjusted operating profit by 3%, and earnings per share by 4%. These adjustments reflect the strong performance of Wizards of the Coast, particularly momentum in Magic the Gathering, offset by concerns about meeting expectations in the Consumer Products segment.
Goldman Sachs based its new price target on an equal-weighted average of two methodologies: an 18.0x price-to-earnings multiple on 2026 estimated earnings (up from 17.5x previously) and a 12.0x enterprise value to adjusted EBITDA multiple on 2026 estimates (up from 11.0x), derived from a sum-of-the-parts framework.
In other recent news, Hasbro Inc. reported its third-quarter 2025 earnings, exceeding market expectations. The company achieved an adjusted earnings per share (EPS) of $1.68, surpassing the projected $1.63. Additionally, Hasbro’s revenues amounted to $1.4 billion, which was higher than the anticipated $1.35 billion. These results reflect the company’s strong performance in the quarter. Despite this positive financial outcome, Hasbro’s stock experienced a decline in premarket trading. This suggests a mixed response from investors following the earnings announcement. The company’s ability to surpass both EPS and revenue forecasts highlights its operational effectiveness during the period. These recent developments will be of interest to investors monitoring Hasbro’s financial health and market position.
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