Hasbro Poised for Potential EPS Upside Driven by 'Magic: The Gathering,' Mattel Faces More Cautious Retailer Buying Behavior, BofA Says

MT Newswires Live
Jul 17

Hasbro (HAS) is positioned for a potential earnings per share upside in Q2 because of a "better-than-expected" contribution from "Magic: The Gathering" and easing pressure from tariffs, BofA Securities said in a note Thursday.

The firm said it believes that such upside and tariff relief "will be more than enough to offset" an expected 20% drop in Q2 consumer products revenue amid the move of major retailers to shift to a domestic sourcing model from a direct import supply chain model.

For Mattel (MAT), BofA said it cut its Q2 earnings per share estimate to $0.15 from $0.21 to reflect a reduction in its Q2 net sales because of "more cautious and delayed" retailer buying behavior and some effect from direct import to domestic sourcing for retailers.

"We believe delayed retailer buying behavior and higher expense ratios should be partially offset by Jurassic World: Rebirth movie related sell-in benefit," the firm said.

BofA raised its price objective on Hasbro to $90 from $85 and maintained its buy rating. The firm reiterated its buy rating on Mattel, with a $28 price objective.

Hasbro and Mattel are set to release their respective Q2 results on July 23.

Price: 77.06, Change: +1.14, Percent Change: +1.49

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