Monness Crespi & Hardt Upgrades Hasbro to Buy (HAS)
Hasbro (NYSE:HAS) was upgraded by analysts at Monness Crespi & Hardt from a “neutral” rating to a “buy” rating in a research report issued to clients and investors on Tuesday, StockRatingsNetwork reports. The firm currently has a $60.00 price objective on the stock. Monness Crespi & Hardt’s target price suggests a potential upside of 20.68% from the company’s current price.
The analysts wrote, “We are upgrading shares of Hasbro to Buy (from Neutral) and initiating a $60 price target. We believe Hasbro has strong visibility into sales and earnings growth for the next two years. We expect growth in the Girls segment, driven by continued momentum in My Little Pony, the 2014 re-launch of Littlest Pet Shop and growth in Nerf Rebelle. Wizards of the Coast can drive mid-single digit growth in the Games segment even with growth decelerating to +10-15%. In addition, we believe broad based strength in Games year to date indicates a turning point/stabilization in the traditional games business. Finally, a strong TV and movie line-up should drive double digit growth in Boys for the next two years. Margin expansion will be driven by the company’s cost saving initiative (another $52 – $55 million will be realized after 2013), leverage on emerging market sales growth and a mix shift toward entertainment and licensing revenue. In short, we expect revenue growth will accelerate to the high single digit range for the next two years and see the potential for more than $4.00 EPS in 2015 and nearly $5.00 EPS in 2017. Sell-side sentiment remains cautious (4 buy ratings, 7 holds and 2 sells). Our $60 price target is based on 15x $4.00 EPS in 2015. The stock has traded at an average valuation of 13.6x ntm EPS over the past three years. We believe a premium is warranted given improving visibility into sales and earnings growth.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Ned Davis Research upgraded shares of Hasbro from a “neutral” rating to a “buy” rating in a research note to investors on Monday. Separately, analysts at Goldman Sachs Group Inc. reiterated a “sell” rating on shares of Hasbro in a research note to investors on Monday, October 7th. They now have a $43.00 price target on the stock, down previously from $44.00. Finally, analysts at Citigroup Inc. upgraded shares of Hasbro from a “sell” rating to a “buy” rating in a research note to investors on Monday, August 26th. They now have a $53.00 price target on the stock. Two analysts have rated the stock with a sell rating, five have issued a hold rating and five have issued a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average price target of $49.25.
Shares of Hasbro (NYSE:HAS) opened at 49.72 on Tuesday. Hasbro has a 52-week low of $34.91 and a 52-week high of $51.68. The stock’s 50-day moving average is $47.33 and its 200-day moving average is $46.26. The company has a market cap of $6.450 billion and a P/E ratio of 20.11.
Hasbro (NYSE:HAS) last announced its earnings results on Monday, October 21st. The company reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.29 by $0.02. The company had revenue of $1.37 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the previous year, the company posted $1.24 earnings per share. The company’s revenue for the quarter was up 1.9% on a year-over-year basis. Analysts expect that Hasbro will post $2.87 EPS for the current fiscal year.
Hasbro, Inc, engaged in providing children’s and family leisure time products with a range of portfolio of brands and entertainment properties.
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