Hasbro's Stock Outlook Dims: Analyst Downgrades To Neutral Amid Persisting Industry Headwinds
Portfolio Pulse from Shivani Kumaresan
DA Davidson analyst Linda Bolton Weiser downgraded Hasbro Inc (NASDAQ:HAS) from Buy to Neutral and lowered the price target from $60 to $53, citing a post-COVID correction in the toy industry and persisting headwinds into 2024. The analyst reduced FY24 sales and EPS estimates and suggested that the consensus operating profit estimate for FY24 is too optimistic. Concerns were also raised about Hasbro's ability to cover dividends with free cash flow and meet its debt-to-EBITDA target, hinting at a possible dividend cut in early-FY24.
January 02, 2024 | 6:16 pm
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Hasbro downgraded to Neutral by DA Davidson with a price target cut from $60 to $53 due to industry headwinds and financial concerns, including the ability to cover dividends and meet debt targets.
The downgrade by DA Davidson reflects a negative outlook on Hasbro's financial performance and industry position. The reduction in price target and concerns about dividend coverage and debt levels are likely to negatively impact investor sentiment and the stock price in the short term.
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