Analyst Megan Alexander from Morgan Stanley maintained a Buy rating on Hasbro and increased the price target to $85.00 from $83.00.
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Megan Alexander’s rating is based on a combination of strategic initiatives and financial performance that suggest Hasbro is positioned for growth. Despite a slight pullback in stock value following the second quarter earnings, Alexander views this as an overreaction to an in-line outlook for the second half of the year. The company’s strategy to transition towards higher growth and higher margins is expected to exceed consensus estimates and lead to a long-term structural re-rating as investors recognize the potential for sustained growth.
Alexander highlights the company’s consistent performance, noting that Hasbro has surpassed earnings per share expectations for six consecutive quarters. The success of the Universes Beyond strategy is seen as a key driver for future growth, expanding opportunities for player acquisition and licensing. Additionally, the raised full-year EBITDA guidance and conservative second-half outlook provide visibility to near-term upside, prompting an increase in future earnings estimates and a positive price target outlook.
According to TipRanks, Alexander is a 3-star analyst with an average return of 4.1% and a 58.95% success rate. Alexander covers the Consumer Cyclical sector, focusing on stocks such as SharkNinja, Inc., Hasbro, and Mattel.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $92.00 price target.