Hasbro (HAS) PT Lowered to $83 at BofA Securities

BofA Securities analyst Jason Haas lowered the price target on Hasbro (NASDAQ: HAS) to $83.00 (from $91.00) while maintaining a Buy rating following the company's investor day.

The analyst commented, "Hasbro cut its 2022 ex. FX revenue guidance from up low single digits to flat to slightly down. Including the headwind from FX, Hasbro expects 2022 revenue down 4-5%. Revenue in 3Q is now expected to be down 15% (down 12% ex. FX) with operating profit down more. This is materially worse than the Street had modeled (3QE revenue -3.5%). Hasbro had warned on its 2Q call that 3Q had challenging compares and revenue was pulled forward into 2Q as retailers ordered early, but these results are worse than expected. Hasbro did not provide much more color on 3Q, but we suspect rising inflation has pressured consumer budgets more than initially expected. Reflecting this, we’re lowering our estimates and PO to $83 (from $91) still on 16x ’23 P/E. We reiterate Buy as we continue to expect toys will outperform other hardline categories in a downturn."

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