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On Monday, Roth/MKM reiterated its Buy rating on Hasbro (NASDAQ:HAS) shares with a steady price target of $82.00.
"Recent conversations with management keep us confident in Hasbro's turnaround story," said the analysts.
With the approach of the holiday season, Hasbro is expected to benefit from a stronger product lineup. However, some revenue projections for the third quarter are being adjusted, with expectations for a shift into the fourth quarter due to a decrease in direct import shipments.
Despite this adjustment, Roth/MKM's full-year forecast for Hasbro remains unchanged and is considered to be potentially conservative. The firm's optimism extends into the future, focusing on the company's strategic growth plans. These plans include a transition towards more digital offerings, increasing direct-to-consumer sales, and expanding their licensing agreements.
The $82 price target is based on an 18 times multiple of Roth/MKM's projected earnings per share (EPS) for Hasbro in 2025.
In other recent news, 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 (EPS) estimate for Hasbro to $1.27, up from $1.14.
Goldman Sachs increased its price target for Hasbro shares to $65.00, after the company's second quarter financial results surpassed expectations in terms of Revenue, Adjusted EBITDA, and Adjusted Diluted EPS. The revenue beat was largely due to higher than anticipated revenues and Adjusted Operating Profit from Hasbro's Wizards of the Coast (WOTC) segment.
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 Roth/MKM's positive outlook on Hasbro. The company's market cap stands at $10.08 billion, reflecting its significant presence in the toy industry. Despite recent challenges, InvestingPro Tips indicate that net income is expected to grow this year, aligning with Roth/MKM's optimistic stance on Hasbro's recovery.
Hasbro's strong dividend history is noteworthy, with InvestingPro data showing the company has maintained dividend payments for 44 consecutive years. This consistency may appeal to income-focused investors, especially given the current dividend yield of 3.87%.
The company's recent performance has been impressive, with a 29.15% price total return over the last three months and a 30.97% return over six months. This strong momentum is reflected in Hasbro trading near its 52-week high, at 98.43% of that peak.
These insights complement Roth/MKM's analysis, providing additional context to Hasbro's current position and future potential. For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Hasbro, providing a deeper understanding of the company's financial health and market position.
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