2023-04-28 08:19:22 ET
Bank of America upgraded Hasbro ( NASDAQ: HAS ) to a Neutral rating from Underperform rating on Friday.
Analyst Jason Haas pointed to Q1 results from the toy company that showed better than anticipated Magic revenue.
"While the overprinting upset many players and collectors, it hasn’t had a discernable impact on demand. Magic revenue grew 14% in 1Q ex. FX vs. our +2% estimate. This was driven by strong demand for Phyrexia, back catalog sales of Modern Horizons 2, and Warhammer 40K which is on its fourth reprint; but the secondary market prices of these sets remain robust."
Hasbro's ( HAS ) consumer products revenue also came in higher than BofA anticipated. Haas now thinks Hasbro ( HAS ) can hit its 2023 guidance.
Bank of America boosted its price objective on Hasbro ( HAS ) to $63 from $42 based on a 13X price-to-earnings ratio on 2024 estimates.
Hasbro ( HAS ) moved up 0.29% in premarket trading to $59.10.
More on Hasbro:
- Review the highlights from Hasbro's earnings report.
- Read the latest breakdowns on Hasbro from Seeking Alpha analysts
- View the growth metrics
- See the financial and valuation comparisons to sector peers
- Dig into the Seeking Alpha Quant Rating
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Hasbro gains after Bank of America pulls bear rating