DA Davidson Downgrades Hasbro (HAS) to Neutral, 'cutting estimates'

DA Davidson analyst Linda Bolton Weiser downgraded Hasbro (NASDAQ: HAS) from Buy to Neutral with a price target of $3.80 (from $4.00).

The analyst comments "Shares are up ~20% in two months, and we are taking this opportunity to cut our below-consensus estimates and downgrade to NEUTRAL from Buy. Signals point to management uncertainty about when the toy business will resume growth, and Wizards & Digital Gaming has a hard comp in 2024 due to Baldur's Gate 3. We estimate 2023 could be the second year that free cash flow does not cover dividends of ~$400M, and that the debt-to-EBITDA target of 2.5x is unlikely to be achieved until after 2025 unless the dividend is cut. We are lowering our target P/E to 14x from 15x and our PT to $53 from $60, based on 14x 2025E EPS of $3.80 (reduced from $4.00)."

For an analyst ratings summary and ratings history on Hasbro click here. For more ratings news on Hasbro click here.

Shares of Hasbro closed at $51.06 yesterday.

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