The Resurgence Of Hasbro: Analyst Sees Promising Future Following Recent Film Successes And Game Reinvestments

B of A Securities analyst Jason Haas upgraded the shares of Hasbro Inc HAS from Neutral to Buy rating and raised the price target from $68 to $85.

The company is expected to report its second-quarter earnings on Thursday, August 3.

The analyst expects Hasbro to report an earnings beat, given strong demand for The Lord of the Rings Magic set, which was released in late June.

Magic accounts for roughly 15% of Hasbro's revenue and 35% of EBITDA.

The analyst is encouraged by Hasbro's reinvestment in in-person gameplay, including the return of the Magic Pro Tour.

The analyst is also growing increasingly bullish on Hasbro's Consumer Products (toy) segment, which was negatively impacted over the pandemic from the lack of movies in theaters.

Transformers: Rise of the Beasts and Spiderman: Across the Spider-Verse performed well at the box office this summer and should be more impactful for toy demand this holiday season, added the analyst.

The analyst sees the announcement of the sale of Hasbro's eOne film and TV studio as a potential positive catalyst for this earnings release.

Price Action: HAS shares are trading higher by 2.56% at $63.59 on the last check Monday.

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