Summary

• Toymaker Hasbro (NASDAQ: HAS) received a price target increase from Bank of America, resulting in the stock price rising by 2%.
• BofA’s price target upgrade came as the broker sees potential in Hasbro’s game ‘Monopoly Go’.
• HAS has a mean recommendation rating of 1.6 on a scale of one to five and the consensus mean price target on the stock is US$79.13.

On August 22, 2023, toymaker Hasbro (NASDAQ: HAS) received a price target increase from Bank of America. Following the revision in Hasbro’s price target, HAS shares rose 2% to US$64.5 in premarket session on Tuesday.

The company’s new target price of US$ 90 represents an upside potential of 42.29% over HAS’ closing price of US$63.25 on Tuesday, August 22, 2023. As per EODHD/Others data, the stock has a consensus mean price target of US$79.13, which is 16.87% higher than HAS’ closing price on Tuesday.

The mean recommendation rating on HAS is 1.6 on a scale of one to five. Here, one represents a ‘strong buy’ rating and five represents a ‘strong sell’ rating.

HAS Price Chart; Image Source: HAS EODHD/Others

HAS closed at US$67.71 on Tuesday, August 22, 2023. The stock hit its 52-week high of US$84.125 a year back on August 22, 2022.

BofA sees potential despite slowdown in revenue

As per BofA Global Research, Hasbro’s game ‘Monopoly Go’ is expected to bring increased revenue to the company. The research analyst stated that royalties collected from ‘Monopoly Go’ should be helpful in increasing the EPS in 2024.

BofA also stated that investors do not fully acknowledge the toymaker’s potential to generate high-margin licensing revenue from its strong IP library.

Meanwhile, Hasbro reported a 10% drop in its revenue for Q2 2023. The company’s net revenue in Q2 2023 was US$1.21 billion, as against US$1.33 billion in Q2 2022. The company’s adjusted EBITDA was US$198.6 million.

However, the company also reported that it delivered US$84 million of cost savings under the Operational Excellence Program during 1H 2023.

What are analysts saying about Hasbro

EODHD/Others data suggests that a total of 11 analysts have covered the stock. Among these analysts, six have given the stock a ‘strong buy’ rating, three have given HAS a ‘buy’ rating and two have given it a ‘hold’ rating.

Analyst D.A. Davidson and Company retained their ‘buy’ rating on the stock after reviewing it on August 6, 2023. Roth MKM also retained a ‘buy’ rating on HAS, while Monness, Crespi, Hardt and Co Inc. also retained a similar ‘buy’ rating.

Argus research upgraded the stock to ‘buy’ after reviewing it on June 16, 2023. Stifel Nicolaus also upgraded HAS to ‘buy’ rating on August 4, 2023.

EODHD/Others data suggests that Roth MKM maintained a price target of US$80 on HAS as on August 23, 2023. Stifel Nicolaus has maintained a price target of US$79 on HAS.