On Friday, Roth/MKM made a positive adjustment to Hasbro's (NASDAQ:HAS) financial outlook, raising the toy and entertainment company's price target from $75.00 to $82.00 while maintaining a Buy rating on the stock. The firm's analyst cited several factors contributing to the company's improved financial health and prospects.
Hasbro's second quarter and first half performance demonstrated the effectiveness of its turnaround strategy, with digital contributions surpassing expectations. The company's inventory levels, both owned and at retail, were reported to be in good condition. Additionally, Hasbro's operating margin showed significant improvement.
The updated full-year guidance provided by Hasbro has been increased, reflecting only a part of the company's second-quarter outperformance. Roth/MKM acknowledged the tougher year-over-year comparison for the "Magic: The Gathering" franchise in the second half of the year. Nonetheless, the firm believes that Hasbro has multiple opportunities for growth.
In other recent news, Hasbro Inc (NASDAQ:HAS). has been upgraded from Hold to Buy by CFRA, which also raised its price target to $72 from $59. This follows Hasbro's second-quarter earnings report, which surpassed consensus estimates with a normalized EPS of $1.22 and reported revenue of $995 million, $52 million above estimates.
However, the company's performance varied across segments, with Consumer Products revenue down 20% year-over-year, Digital Gaming revenue up 20%, and Entertainment revenue dropping 90%, primarily due to the sale of eOne.
In addition, Hasbro's full-year forecast expects a decrease in consumer product segment revenue by 7% to 11%. Meanwhile, JPMorgan has also upgraded Hasbro stock from Neutral to Overweight, citing cost efficiency and digital gaming growth.
In related news, private equity firm L Catterton has made an acquisition offer to Mattel Inc (NASDAQ:MAT)., potentially sparking interest from other parties, including Hasbro. Mattel recently surpassed analysts' expectations for its second-quarter profits, thanks to stringent cost control measures.
However, the company experienced a 1% drop in net sales to $1.08 billion. Despite these recent developments, Mattel's CEO expressed confidence in the company's prospects for the latter half of the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.