J.P. Morgan analyst Christopher Horvers has maintained their neutral stance on HAS stock, giving a Hold rating on April 18.
Christopher Horvers has given his Hold rating due to a combination of factors related to Hasbro’s performance and future expectations. While Hasbro showed impressive results in the first quarter, with gross margins significantly surpassing the broader market’s expectations and demonstrating effective cost management, this was not enough to warrant an upgrade in the stock rating. The company’s margins exceeded estimates, and their earnings per share (EPS) were nearly double what was anticipated, highlighting a robust cost optimization program and successful management of inventory levels.
However, Christopher Horvers remains cautious due to Hasbro’s moderate top-line performance and potential challenges ahead. He notes that although the first quarter results add credibility to Hasbro’s financial strategy, there are concerns regarding the sustainability of these margins, particularly with difficult comparable periods ahead for their Wizards of the Coast segment and a lagging Consumer Products division. Additionally, a shortened holiday season could pose further risks. Despite these concerns, the maintained guidance for the fiscal year and the strong first-quarter performance are likely to support the stock’s current valuation, leading to Horvers’s decision to rate Hasbro as a Hold.
In another report released on April 18, Bank of America Securities also assigned a Hold rating to the stock with a $60.00 price target.
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Hasbro (HAS) Company Description:
Hasbro, Inc. engages in the provision of children and family leisure time products and services with a portfolio of brands and entertainment properties. The firm operates under the following brands: Littlest Pet Shop, Magic: The Gathering, Monopoly, My Little Pony, Nerf, Play-Doh, and Transformers. It operates through the following segments: United States and Canada, International, and Entertainment, Licensing and Digital. The United States and Canada segment refers to the marketing and sale of products in the United States and Canada which include the innovation and reinvention of toys and games. The International segment engages in the marketing and sale of product categories to retailers and wholesalers in Europe, Latin and South America, and the Asia Pacific region and through distributors in those countries where there is no direct presence. The Entertainment, Licensing and Digital segment conducts movie, television and digital gaming entertainment operations. The company was founded by Henry Hassenfeld and Hilal Hassenfeld in 1923 and is headquartered in Pawtucket, RI.
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