HAS: Gaming And Digital Franchise Momentum Will Drive Further Upside Beyond 2025

Analysts have modestly raised their blended price target on Hasbro by a few dollars per share, reflecting confidence that solid Q3 execution, a maturing strategic pivot, and a strengthening Magic and video game pipeline can support slightly faster growth and improved long term earnings power, despite only incremental changes to discount rate and profitability assumptions.

Analyst Commentary

Bullish analysts highlight that the incremental price target increases reflect growing conviction that Hasbro can deliver upside to prior growth and margin expectations as its strategic pivot gains traction.

While near term execution has been encouraging, some bearish analysts remain focused on the durability of these trends and the risk that elevated expectations could outpace actual earnings delivery.

Bullish Takeaways

• Recent price target hikes into the high $80s and low $100s signal increased confidence that Q3 outperformance is repeatable and not purely driven by one time factors. This supports a higher earnings and valuation base.
• Bullish analysts see the strategic pivot as firmly underway. Q3 EPS strength despite below the line headwinds reinforces the view that cost discipline and portfolio focus can drive structurally better margins over time.
• Management meetings at recent industry events have strengthened views that Magic can post another strong year in 2025, supported by a robust 2026 set schedule that underpins multi year revenue visibility.
• The expanding video game pipeline is viewed as an underappreciated growth driver that could diversify Hasbro's earnings mix and justify premium multiples if execution remains solid.

Bearish Takeaways

• Bearish analysts caution that recent price target increases are modest relative to the stock's prior decline. This suggests that the implied upside may already reflect much of the near term improvement in execution.
• There is concern that Q3 strength benefited from favorable comparisons, and that sustaining double digit growth in Magic and games into 2026 may prove challenging if consumer demand normalizes.
• Some worry that investments required to build out the video game pipeline could pressure free cash flow and delay the full margin benefits of the strategic pivot if titles are delayed or underperform.
• Uncertainty around the broader macro and holiday spending environment leaves risk that consensus earnings and the newly raised price targets could still be vulnerable if trends weaken.

What's in the News

• Hasbro issued 2025 guidance calling for high single digit constant currency revenue growth, signaling confidence in the post pivot growth trajectory. (Corporate guidance)
• Hasbro and Netflix were named global co master toy partners for hit film KPop Demon Hunters, with a broad toy and games lineup planned for 2026 to capitalize on the franchise's surge in popularity. (Client announcement)
• Hasbro and 37GAMES will conclude their year long Transformers collaboration in mobile title Puzzles & Survival on December 15, 2025, reinforcing the company’s growing presence in licensed gaming. (Client announcement)
• Duluth Trading and Hasbro launched a nostalgia driven holiday collaboration that features classic brands like Potato Head, Lincoln Logs, Tonka and Tinkertoy across Duluth apparel and select toy assortments. (Client announcement)
• Kayou and Hasbro previewed the My Little Pony Card Game, Friendships Begin at New York Comic Con ahead of a wider U.S. launch in 2026, expanding Hasbro’s reach in trading card games beyond Magic. (Product related announcement)

Valuation Changes

• Fair Value per Share has risen slightly, moving from $91.54 to approximately $92.08. This reflects a modestly higher long term earnings outlook.
• Discount Rate has edged up slightly, from about 7.68 percent to 7.69 percent. This implies a marginally higher required return on Hasbro’s future cash flows.
• Revenue Growth has increased modestly, with long term assumptions moving from roughly 5.25 percent to 5.30 percent. This signals slightly stronger anticipated top line momentum.
• Net Profit Margin has slipped slightly, easing from around 16.36 percent to 16.30 percent. This indicates a minor reduction in projected long term profitability levels.
• Future P/E multiple has risen slightly, from about 19.53x to 19.70x. This suggests a small upward adjustment in the valuation investors are expected to pay for Hasbro’s forward earnings.