Hasbro (HAS) Stock Forecast & Price Target

Hasbro is poised for a positive financial trajectory, with guidance indicating slight growth in sales for 2025 on a constant currency basis, marking a return to revenue growth for the first time since 2021. The company's operating margins are projected to expand to approximately 23% in 2025, driven by favorable cost savings, improved product mix, and accelerating growth in the Wizards of the Coast segment. Additionally, improvements in the Consumer Products segment are anticipated, with margins expected to rise significantly by 2027, reflecting strong brand performance and strategic management changes.

Hasbro is facing significant challenges in its Consumer Products segment, with sales projected to decline between 0% and -4% year-over-year, primarily due to weak performance from the Nerf and Star Wars brands. Additionally, revenue projections for 2025 have been revised downward, estimating a growth of only 1%, which is a reduction from a previously expected 4%, reflecting ongoing difficulties in key product lines. The company is also experiencing profitability strains, as shown by the disappointing results in 4Q23 and the anticipated decline in operating margins for Wizards of the Coast, driven by new game release amortization and inventory adjustments.