Is Hasbro Losing Its Magic? This Analyst Double Downgrades Stock, Slashes Price Target

Hasbro, Inc. HAS reported a sharp decline in its third-quarter earnings, mainly hit by tariffs on Chinese products and higher supply chain costs.

There is growing frustration around the toy manufacturer’s "Magic: The Gathering" business, according to BofA Securities.

The Hasbro Analyst: Jason Haas downgraded the rating for Hasbro from a Buy to Underperform, while reducing the price target from $73 to $42.

The Hasbro Thesis: Talks with players, collectors, distributors and local games stores reveal that the main cause of the growing frustration has been the overproduction of Magic cards, which is “destroying the long-term value of the brand,” Haas said in the downgrade note.

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“Seven of the last eight major Magic releases have declined in value, and Hasbro continues to reprint its most successful sets, driving prices down further,” the analyst wrote. “Our store checks have also found that many national retailers are cutting Magic, and those that continue to carry it are heavy with aged inventory,” he added.

HAS Price Action: Shares of Hasbro had declined by 6.62% to $59.21 at the time of publication Monday.

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