HAS: Gaming Segment Outperformance Will Drive Share Gains Into Next Year

Hasbro's analyst price target has edged up slightly, with analysts citing robust performance in key segments and improved earnings visibility as reasons for raising estimates by approximately $0.08 to $90.75.

Analyst Commentary

Following recent quarterly results and management discussions, analyst sentiment on Hasbro reflects both heightened optimism around core growth drivers and awareness of ongoing risks. The most recent research from key analysts highlights notable trends supporting the company’s valuation, execution, and future outlook.

• Bullish analysts observe that Hasbro's recent earnings beats across multiple quarters confirm the positive effect of its ongoing strategic pivot. This provides confidence in the company’s execution and earnings visibility.
• Upward revisions to price targets signal expectations that Hasbro’s gaming business, especially Magic, could outperform consensus estimates in the coming year. This outlook is reinforced by robust content schedules and a healthy pipeline.
• The company’s exposure to high-growth segments such as video gaming and premium game releases is seen as a meaningful driver of both near-term and long-term revenue growth.
• Recent conversations with management and executive leadership indicate that Hasbro remains focused on margin expansion and operational efficiency. These factors further support bullish outlooks on valuation.

• Cautious analysts note that some of Hasbro’s recent earnings strength comes despite "below-the-line" headwinds. This suggests persistent non-operational risks or temporary factors contributing to upside.
• Upside in the gaming segment performance is still seen as somewhat reliant on expected macro trends and customer demand holding steady, making ongoing execution critical for future results.
• There remains some risk associated with the pace of turnaround in the consumer product business. This implies that broader corporate earnings outperformance should not be taken as guaranteed.

What's in the News

• Duluth Trading Co. is teaming up with Hasbro to launch a nostalgia-inspired holiday collection featuring iconic toys like POTATO Head and LINCOLN LOGS on apparel and classic sets available in stores and online. (Key Developments)
• Netflix has named Hasbro a global co-master toy licensee for the hit film KPop Demon Hunters, opening the door to a lineup of toys and collectibles launching in 2026. (Key Developments)
• Kayou, in collaboration with Hasbro, previewed the MY LITTLE PONY Card Game: Friendships Begin, with a U.S. launch set for early 2026 following its Chinese debut. (Key Developments)
• Tonies SE and Hasbro will bring classic board games, including Monopoly, to the screen-free Toniebox 2 in 2026, adding interactive features for a new play experience across multiple markets. (Key Developments)
• Hasbro has provided 2025 earnings guidance, forecasting total revenue growth in the high single digits on a constant currency basis. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has risen slightly from $90.67 to $90.75. This change reflects upward adjustments based on recent performance and outlook.
• The Discount Rate increased modestly, moving from 7.51% to 7.64%. This may indicate a marginally higher perceived risk or return expectation in valuation models.
• Revenue Growth projections have improved, rising from 4.77% to 5.22%. This suggests increased optimism regarding Hasbro’s top-line trajectory.
• Net Profit Margin forecast decreased slightly, edging down from 16.56% to 16.26%. This implies expectations for somewhat lower profitability.
• The Future P/E ratio has inched up from 19.42x to 19.47x. This points to a minor change in forward valuation multiples used by analysts.