On Monday, Stifel, a financial services firm, announced an increase in the price target for Hasbro (NASDAQ:HAS) shares to $67.00, up from the previous target of $64.00. The firm has maintained a Buy rating on the toy and board game company.
The adjustment comes ahead of Hasbro's first-quarter earnings report, set to be released on April 24th. Stifel's analysis suggests that despite expecting mixed financial results, there are several positive factors that could impact Hasbro's performance. These include improved retail sales observed in March, cost reductions from the company's Operational Excellence program, and growing enthusiasm for the new game MONOPOLY GO!.
Stifel has made slight upward revisions to their estimates, which have contributed to the new price target. The target price is derived from a blended methodology and suggests a forward earnings multiple of 20.2 times for the year 2024 and 17.3 times for 2025. These multiples compare to Hasbro's three-year and five-year historical averages of 15.2 times and 17.2 times, respectively.
The firm's optimism about Hasbro is further underscored by the inclusion of the company's stock in the Stifel Select List, a compilation of stocks that Stifel has identified as top picks. The new price target of $67.00 reflects a confidence in the company's near-term growth prospects.
InvestingPro Insights
As Stifel raises its price target for Hasbro (NASDAQ:HAS) amidst a mix of expected financial results, InvestingPro data and tips offer additional context for investors. With a market capitalization of $7.77 billion, Hasbro's recent performance includes a strong 3-month price total return of 20.13%, indicating a positive short-term trend in the stock's price. However, the company's revenue has seen a decline of 14.57% over the last twelve months as of Q4 2023, aligning with Stifel's anticipation of a sales decline in the current year.
InvestingPro Tips highlight that Hasbro's net income is expected to grow this year, which could be a contributing factor to Stifel's buy rating and increased price target. Moreover, the company has shown commitment to shareholders by maintaining dividend payments for 44 consecutive years, currently offering a substantial dividend yield of 4.86%. Despite these positive indicators, the stock's Price / Book multiple stands at a high 7.31, which may raise valuation concerns for potential investors.
For those interested in a deeper dive into Hasbro's financial health and stock performance, InvestingPro provides additional tips, with 5 more insights available to help inform investment decisions. To access these insights and more, investors can visit https://www.investing.com/pro/HAS and take advantage of a special offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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