Hasbro, Inc. (HAS), a leading toy and game company with a market cap of $9.3 billion, specializes in designing and marketing a diverse range of products, from traditional toys to digital games. Based in Pawtucket, Rhode Island, the company is renowned for its popular brands, including MAGIC: THE GATHERING and TRANSFORMERS.
Shares of the toy and game maker have significantly underperformed the broader market over the past 52 weeks. HAS stock has declined 1.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27%. However, in 2024, Hasbro's performance has rebounded strongly, with a 30.9% jump, outpacing SPX's 16.8% gain on a YTD basis.
Looking closer, HAS has fallen short of the ETFMG Video Game Tech ETF's (GAMR) 12.9% returns over the past 52 weeks but has surpassed GAMR's 6.6% YTD gain.
Hasbro has underperformed over the past year due to ongoing challenges from its turnaround strategy, excess inventory issues, and intense competition. However, the stock surged 3.5% on Jul. 25 due to the company reporting a smaller-than-expected drop in Q2 sales and exceeding profit expectations with adjusted earnings of $1.22 per share. This boost was fueled by effective cost-control measures, including reduced inventory levels and strong performance in digital gaming, particularly from titles like "Monopoly Go!" and "Baldur's Gate 3."
For the current fiscal year, ending in December, analysts expect HAS' EPS to grow 56.6% year over year to $3.93. The company's earnings surprise history is mixed. It beat or met the consensus estimates in three of the last four quarters while missing on one another occasion.
Among the 10 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on six “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
The configuration is slightly more bullish than three months ago, with five analysts suggesting a “Strong Buy.”
On Jul. 26, Goldman Sachs raised its price target for Hasbro shares to $65, maintaining a “Neutral” rating, following the company's strong Q2 earnings results driven by higher-than-expected revenue and profits in its Wizards of the Coast segment, despite mixed performance in Consumer Products margins.
The mean price target of $73.50 represents a premium of nearly 10% to HAS' current levels. The Street-high price target of $85 implies a modest potential upside of 27.2%.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
