As US Per Capita Toy Spending Falls 30%, Goldman Sachs Says "Sell" Hasbro (HAS)
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Price: $93.56 --0%
Rating Summary:
17 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 12
Rating Summary:
17 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 12
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Did you know that the nominal amount spent on traditional toys/games in the US per capita is down 30% from $85/person to $60/person since 1998, and the pace of declines has accelerated to 5-10% year to date?
If you knew this would you be buying toy stocks?
Shares of Hasbro (NASDAQ: HAS) are feeling the pitch today from a downgrade from Neutral to Sell at Goldman Sachs.
The firm notes the company's second-largest division - Games and Puzzles - has declined the most over the past decade and is a shrinking slice of the shrinking pie. Also, its largest division - Boys toys - is overearning and will decline in 2012 and 2013. "Transformers, Beyblades, and Nerf, which make up 75% of the division, are all now declining in the US," the firm said about Boys toys. Goldman believe that sales and EBITDA may ultimately stagnate from here and additional meaningful dividend increases may be limited.
Goldman lowered 2012-2014 estimates to $2.75/$2.67/$2.86 from $2.81/$2.73/$3.09 and lower their 12-month price target to $32 from $34, implying 19% downside in the shares.
The firm also cut numbers on rival Mattel (NYSE: MAT), although they are keeping their Neutral rating on that name. 2012-2014 EPS estimates go to $2.35/$2.56/$2.73, which are 5%/6%/6% below consensus. They cut thier 12-month price target to $33 from $35.
For an analyst ratings summary and ratings history on Hasbro click here. For more ratings news on Hasbro click here.
Shares of Hasbro are down 4 percent to $37.68. Mattel is down 1.3 percent.
If you knew this would you be buying toy stocks?
Shares of Hasbro (NASDAQ: HAS) are feeling the pitch today from a downgrade from Neutral to Sell at Goldman Sachs.
The firm notes the company's second-largest division - Games and Puzzles - has declined the most over the past decade and is a shrinking slice of the shrinking pie. Also, its largest division - Boys toys - is overearning and will decline in 2012 and 2013. "Transformers, Beyblades, and Nerf, which make up 75% of the division, are all now declining in the US," the firm said about Boys toys. Goldman believe that sales and EBITDA may ultimately stagnate from here and additional meaningful dividend increases may be limited.
Goldman lowered 2012-2014 estimates to $2.75/$2.67/$2.86 from $2.81/$2.73/$3.09 and lower their 12-month price target to $32 from $34, implying 19% downside in the shares.
The firm also cut numbers on rival Mattel (NYSE: MAT), although they are keeping their Neutral rating on that name. 2012-2014 EPS estimates go to $2.35/$2.56/$2.73, which are 5%/6%/6% below consensus. They cut thier 12-month price target to $33 from $35.
For an analyst ratings summary and ratings history on Hasbro click here. For more ratings news on Hasbro click here.
Shares of Hasbro are down 4 percent to $37.68. Mattel is down 1.3 percent.
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