Bank of America announced on Friday that it had upgraded its recommendation on Hasbro shares from 'neutral' to 'buy', with a price target raised from $70 to $80.
'We do not believe that current consensus forecasts fully take into account the success of Hasbro's digital gaming strategy with Monopoly Go!', explains the broker in a note.
BofA also sees encouraging signs in games and toys, after Costco recently reported that toys topped its non-food sales in April and May, the first time this has happened since last November.
Referring also to the stability of the Magic card business, the broker believes that this positive momentum should continue in fiscal 2025.
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Hasbro, Inc. specializes in the design, production and marketing of games and toys. Additionally, the group is active in the production of films and TV programs. Net sales break down by activity as follows:
- sales of toys and games (89.3%): action figurines and toys, dolls and stuffed toys, traditional toys, electronic toys and games, creative and educational toys and games, card games, etc. sold under franchise brands (Littlest Pet Shop, Magic : The Gathering, Monopoly, My Little Pony, Nerf, Play-Doh and Transformers), under partner brands (Spider-Man, The Avengers, Star Wars, Disney Princess, Disney Frozen, Disney's Descendants, Beyblade, Dreamworks' Trolls, Sesame Street and Yo-Kai Watch), under company-owned brands (Baby Alive, Furreal Friends, Kre-o, Playskool and Playskool Heroes) and other (board games and digital games sold under Dungeons & Dragons, Jenga, The Game Of Life, Operation, Pie Face, Scrabble, Trivial Pursuit, Twister, Fantastic Gymnastics, Speak Out and Toilet Trouble;
- production and sales of film, TV and digital games licenses (10.7%).
The United States account for 60.2% of net sales.