Hasbro ( NASDAQ: HAS ) is on watch after a wild day of trading during the toy company's analyst day. While Hasbro did not provide much more color on Q3, full-year revenue guidance was cut.
After taking in the presentation, Bank of America thinks rising inflation has pressured consumer budgets more than initially expected.
The view on the long-term from Hasbro ( HAS ) was more positive. Management guided for 50% operating profit growth over the next three years, a mid-single digit revenue CAGR through 2027 and operation margin reaching 20% by 2027.
Hasbro was noted to have also unveiled a compelling long-term strategic plan that will include leveraging more customer data analytics, as well as focusing on fewer, bigger brands. BofA said the content slate should be supportive with Black Panther this holiday season followed by Dungeons & Dragons in March, Guardians in May, Spider-Man and Transformers in June and many others.
"Magic has been an area of concern for investors, so we were encouraged to hear that Hasbro expects Magic to be up double digits this year and up high single digits thereafter."
BofA reiterated a Buy rating on Hasbro ( HAS ) on the expectation that toys will outperform other hardline categories in an economic downturn. BofA's price objective of $83 on HAS reps 19% upside potential.
Read more about the Hasbro presentation.
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Hasbro is highlighted by BofA for 'compelling' strategic plan, strong content slate