Roth/MKM Affirms Buy Rating as Hasbro Prepares for Growth

Roth/MKM Confident in Hasbro's Turnaround

Roth/MKM has reiterated its Buy rating on Hasbro (NASDAQ: HAS) with a solid price target of $82. The analysts expressed their confidence in Hasbro's turnaround prospects following recent discussions with the company's management.

Holiday Season Boost

As the holiday season approaches, Hasbro is expected to benefit significantly from a revitalized product lineup. However, there's an adjustment anticipated for third-quarter revenue projections due to a decline in direct import shipments, which may delay some revenues into the fourth quarter.

Future Positive Outlook

Despite these short-term challenges, Roth/MKM is maintaining its full-year forecasts for Hasbro, which they consider could be conservative given the company’s strategic growth initiatives.

Strategic Growth Plans of Hasbro

Hasbro is actively shifting its focus toward enhancing its digital offerings and boosting direct-to-consumer sales. In addition, the expansion of licensing agreements is set to play a critical role in driving the company’s growth.

Valuation and Earnings Estimates

The $82 price target for Hasbro is derived from an 18 times multiple of the projected earnings per share (EPS) that Roth/MKM expects for the company in 2025.

Recent Price Target Adjustments

Other firms have also adjusted their price targets for Hasbro, reflecting positive sentiments about the company's prospects. BofA Securities has increased its target to $90, owing to strong sales of the new "Magic: The Gathering" Bloomburrow set. They also raised their third-quarter EPS estimate for Hasbro to $1.27, up from $1.14.

Goldman Sachs and CFRA Insights

Goldman Sachs has set its price target at $65, following the company's second quarter results that exceeded expectations in revenue and adjusted EBITDA. This positive performance is largely attributed to higher revenues from Hasbro's Wizards of the Coast division. Furthermore, CFRA has upgraded Hasbro from Hold to Buy, and raised its price target to $72, highlighting improvement in operating margins and growth in digital gaming.

Market Position and Financial Health

Roth/MKM's positive outlook is reinforced by recent data showing Hasbro’s market capitalization at approximately $10.08 billion. This figure underlines Hasbro’s significant standing in the global toy industry. InvestingPro data suggests that net income is on track to grow this year, supporting a recovery narrative that aligns with Roth/MKM's perspective.

Dividend Consistency

One noteworthy aspect of Hasbro’s profile is its strong dividend history, with a record of 44 consecutive years of payments. With a current dividend yield of 3.87%, this stability is particularly attractive to income-focused investors.

Strong Market Momentum

Hasbro has shown impressive stock performance recently. Investors have witnessed a price total return of 29.15% over the last three months and a striking 30.97% return over the six-month period. This remarkable growth has positioned Hasbro close to its 52-week high, trading at 98.43% of that peak.

Conclusion

With various firms aligning their outlooks positively, Hasbro is positioned favorably in a competitive market. Its planned strategies for growth and adaptation to evolving market demands offer an optimistic perspective for investors looking towards the company's future.

Frequently Asked Questions

What is Roth/MKM's Price Target for Hasbro?

Roth/MKM has set a Buy rating for Hasbro with a price target of $82.

How have other analysts rated Hasbro?

Analysts from BofA Securities and Goldman Sachs have increased their price targets for Hasbro to $90 and $65, respectively, pointing to a positive outlook.

What key strategies is Hasbro implementing for growth?

Hasbro is focusing on enhancing digital offerings, increasing direct-to-consumer sales, and expanding licensing agreements.

What is Hasbro's recent dividend yield?

The current dividend yield for Hasbro is 3.87%, reflecting its consistent dividend payment history.

How has Hasbro's stock performed recently?

Hasbro has seen a price total return of 29.15% in the last three months and 30.97% over the past six months.

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