Hasbro Targets 30% Upside with $110 Price Target, Q1 Sales Up 13%
HAS•Hasbro is shifting its business model from one-time product hits to dependable recurring revenue streams, driven by a 26% lift at its Wizards of the Coast division. First-quarter revenue rose 13% to $1.0 billion with adjusted EPS up 41%, while an analyst’s $110 price target versus an $84.72 share price implies nearly 30% upside and the company targets $150 million in annual cost savings.
1. Strategic Shift to Recurring Revenue
Hasbro is moving away from reliance on one-off product successes toward predictable income by expanding licensing, digital content and subscription offerings, with Wizards of the Coast serving as the central driver of this new model.
2. Wizards of the Coast Performance
The division delivered a 26% year-over-year revenue increase, fueled by record-setting Magic: The Gathering releases that underscore the potential of recurring consumer engagement.
3. First-Quarter Financial Strength
In Q1, Hasbro posted a 13% rise in revenues to $1.0 billion and a 41% jump in adjusted EPS, while the stock has climbed 24% over the past year versus a 0.8% sector gain.
4. Upside Potential and Cost Savings
An analyst set a $110 price target when shares traded at $84.72, suggesting roughly 30% upside; the company also aims for $150 million in annual cost savings and sees 2026 EPS estimates rising to $6.01.
