Stifel analysts raised the price target on Hasbro (NASDAQ:HAS) to $75 from $70, reiterating a Buy rating on the stock on Tuesday.
The analysts said the firm "recommend purchase of the shares," which is based on a combination of potential near-term catalysts.
The catalysts include: "1) a strong entertainment line-up with several theatrical releases in June; 2) healthy pre-sales for an upcoming MTG card set; and 3) the likely divestiture of the non-core eOne assets, while valuations remain reasonable."
"We remain constructive on Hasbro's '23 entertainment line-up, arguably its best for the boys action figures category (est. 30% of revenue) over the last several years," wrote the analysts.
Stifel's forecast assumes $300 million or more in revenue or 3x higher than sales from the same brands last year, which the analysts said "should contribute to improving fundamentals by 2H23."
"Based on our recent store checks, we've noted decent placement and consumer takeaway for key product lines, notably Spider-Man, and Transformers, providing some confidence around our near-term assumptions here," they concluded.