Hasbro Consensus Estimates Appear Conservative, Does Not Reflect Success Of Digital Gaming Strategy, Says Bullish Analyst

Zinger Key Points
  • Monopoly Go! would go off minimum royalty guarantees in Q2 to generate operating profits of ~$36mm per quarter.
  • Hasbro’s consumer products business is showing signs of a recovery.

Hasbro Inc HAS shares were climbing Friday morning, with more analysts turning bullish on the stock.

The current consensus does not fully reflect the success of the company's digital gaming strategy with Monopoly Go!, according to BofA Securities.

The Hasbro Analyst: Alexander Perry upgraded the rating for Hasbro from Neutral to Buy, while raising the price target from $70 to $80.

The Hasbro Thesis: The company's Monopoly Go! game is likely to move away from minimum royalty guarantees in the second quarter and generate around $36 million in operating profits per quarter in the back half of the year, Perry said in the upgrade note.

Check out other analyst stock ratings.

There are "signs of green shoots" for the company's consumer products business, following challenges in 2023, the analyst stated. "We now see healthy overall toy industry inventory levels while HAS management said that April sell-through was positive," he added.

Hasbro is poised for stronger momentum in 2025, benefiting royalties beyond minimum guarantees for Monopoly Go!, low-single-digit percentage growth in the consumer product business with the toy industry returning to more normalized levels and "a potential tailwind from a more favorable theatrical content slate," Perry further wrote.

HAS Price Action: Shares of Hasbro had risen by 5.19% to $61.03 at the time of publication on Friday.

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: Analyst ColorLong IdeasUpgradesPrice TargetAnalyst RatingsMoversTrading IdeasAlexander PerryBofA SecuritiesExpert IdeasGamesStories That MatterToys
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!