Hasbro ( NASDAQ: HAS ) has held on to its post-earnings gain as analysts largely back the upside for the toy company.
Argus maintained its Buy rating on Hasbro ( HAS ) and cut its price target price to $100. The firm said Argus continues to be helped by strong global brands, including Nerf, Power Rangers, and Transformers. Hasbro ( HAS ) is said to remain a leader in the $30B toy industry. Hasbro's digital products, licensing agreements, and ability to create content are also noted to be differentiated from other toy companies. Argus expects the acquisition of Entertainment One to bolster's Hasbro's ( HAS ) leadership and thinks the toy market can grow internationally. HAS shares are seen as attractive for long-term growth-income investors.
KeyBanc Capital Markets (Sector weight) put the Hasbro ( HAS ) earnings report into the better-than-feared bucket given the backdrop and investor anxiety over the toy company. Analyst Brett Andress said FX weighed on total revenue and the consumer products sales beat was offset by shortfalls in the Wizards of the Coast and Digital Gaming segment and the Entertainment segment.
Truist Securities (Hold, price target $100) called the HAS results mixed, noting that expectations were relatively undemanding into the print. While HAS's maintained forecast may be viewed positively by investors, the 36% y/y decline in digital gaming revenue and significant inventory build amid a generally slowing economic backdrop will likely be viewed with some trepidation.
BMO Capital Markets (Market Perform, price target cut to $80) said Hasbro's ( HAS ) earnings results came in better than expected as stronger-than-anticipated Consumer Product sales, aided by early shipments to retailers to mitigate supply chain bottlenecks, offset weaker-than-anticipated results from Wizards of the Coast and Entertainment. Management was observed to continue to sound positive about overall toy demand, as well as the industry's inherent stability and defensiveness.
Hasbro ( HAS ) fell 0.90% in early trading on Thursday, but is still up for the week. For the year, Hasbro ( HAS ) has underperformed the S&P 500 Index and rival Mattel ( MAT ).
Dig into the Hasbro earnings call transcript.
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Hasbro impresses analysts with better-than-feared results