Hasbro Price Target Boosted to $86 by Roth Capital

Roth Capital has boosted its price target for Hasbro (HAS) from $72 to $86, citing the company's "Play to Win" strategy and optimism about Wizards & Digital Gaming segment growth. Analysts predict an average target price of $79.04, implying a 2.52% upside from the current price. However, GuruFocus estimates suggest a potential downside of 35.54% based on its GF Value calculation.

Roth Capital has raised its price target for Hasbro (HAS) from $72 to $86, reflecting optimism about the company's "Play to Win" strategy and the growth prospects of its Wizards & Digital Gaming segment. This new target implies a 2.52% upside from the current price, according to the latest analyst estimates [1].

Hasbro reported strong Q1 2025 results, with EPS of $1.04 and a 17.1% revenue surge, driven by cost-cutting measures and supply chain shifts. The company's operating profit hit $171 million (19.2% margin), while adjusted operating profit jumped to $222 million (25.1% margin) [2]. These financials underscore Hasbro's commitment to rebuilding profitability in a sector with a low average forward P/E of 12.1x.

The Wizards & Digital Gaming segment, which includes Magic: The Gathering and Monopoly Go!, delivered a 46% revenue jump in Q1. While this segment is still small compared to traditional toys, its high margins make it a key driver for Hasbro's turnaround [2].

However, Hasbro faces several risks. Tariff and trade war uncertainties could derail the company's $1 billion cost-savings target. Additionally, a weak holiday season could negatively impact sentiment, given that 40% of annual revenue comes in during Q4. Furthermore, competitors like Mattel (MAT) and Nintendo are also chasing digital growth, which could limit Hasbro's margins [2].

GuruFocus estimates suggest a potential downside of 35.54% based on its GF Value calculation, indicating significant risks. Nevertheless, analysts project a 15% EPS jump to $4.98 in 2025, which would drop the forward P/E to 12.4x, closer to the industry average [1].

Catalysts to watch include Q3 earnings, holiday sales, and supply chain updates. For investors with a 12–18-month horizon, dipping in at $55–$60 with a stop-loss at $45 and aiming for $75 if the turnaround clicks could offer substantial upside potential [2].

References:
[1] https://www.marketscreener.com/quote/stock/HASBRO-INC-12874/news/Roth-Capital-Adjusts-Hasbro-s-Price-Target-to-86-From-72-Keeps-Buy-Rating-50491555/
[2] https://www.ainvest.com/news/hasbro-gamble-cost-cuts-digital-wonders-win-turnaround-2507/