Skip to main content

Market Overview

BofA Says Hasbro Stock Is A Long-Term Play

BofA Says Hasbro Stock Is A Long-Term Play

Hasbro, Inc. (NASDAQ: HAS) closed the acquisition of Entertainment One (OTC: ENTMF) in an all-cash transaction valued at around $4 billion.

Although Hasbro’s story-led approach to monetize its intellectual property is a positive for the long term, the company’s shares are currency trading at a premium versus its toy manufacturing peers, according to BofA Securities.

The Analyst

BofA’s Bryan Goldberg initiated coverage of Hasbro with a Neutral rating and a price target of $117.

The Thesis

Hasbro is a global play and entertainment story, with a wide portfolio of brands that support healthy profits in the toy manufacturing, gaming, licensed product and filmed entertainment markets, Goldberg said in the note.

He explained that Hasbro had the backing of franchises like Nerf and Transformers, which gave the company around 1,500 play-oriented brands as strategic assets.

This strengthens Hasbro’s position to capitalize on monetization opportunities in the long term, as new mediums and digital formats evolve.

Goldberg believes Hasbro can grow its pro forma EBITDA at a compounded annual rate of 12% from 2018 to 2022, given the performance of its legacy business, favorable mix shift and synergies from the Entertainment One acquisition.

The analyst said, however, that the stock’s potential may remain limited in the near-to-medium term, given muted holiday sales in the fourth quarter of 2019, lingering impact of the U.S.-China trade war and tough 2020 Disney (NYSE: DIS) product comparisons.

Price Action

Shares of Hasbro were flat at $105.00 at time of publication Wednesday.

Related Links

JPMorgan Wants To Play With Mattel's Stock, Passes On Hasbro

Benzinga's Top Upgrades, Downgrades For January 27, 2020

Latest Ratings for HAS

Mar 2021Truist SecuritiesMaintainsHold
Feb 2021BMO CapitalMaintainsMarket Perform
Feb 2021DA DavidsonMaintainsBuy

View More Analyst Ratings for HAS
View the Latest Analyst Ratings


Related Articles (HAS)

View Comments and Join the Discussion!

Posted-In: BofA Securities Bryan GoldbergAnalyst Color Price Target Initiation Analyst Ratings

Latest Ratings

SCYXAegis CapitalMaintains40.0
ARGOBoenning & ScattergoodDowngrades
TLSAZacks Investment ResearchInitiates Coverage On7.5
TOTJP MorganUpgrades
WSOMorgan StanleyMaintains244.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at