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Wall Street Recommendatins for Hasbro after Q2 2018

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Ratings summary

After the second-quarter earnings announcements, 60% of 15 analysts have rated Hasbro (HAS) a “buy” while 33% rated it a “hold.”

After the announcement, we saw a few price revision activities, and we expect some more in the coming days. B. Riley raised the price target to $114.00 from $106.00. Barclays upped its price target to $117.00 from the $100.00 projected earlier.

Currently, analysts’ 12-month average target price for HAS stock is $106.00, which reflects a 0.04% downside to its stock price on July 23.

In comparison, for Mattel (MAT), 67% of 15 Wall Street analysts have a “hold” rating while 20% have a “buy” rating. On July 19, Barclays lowered the target price for MAT from $13.00 to $11.00. The 12-month average target price for MAT stock is $15.75, which reflects a 5.1% downside as of July 23.

Of the five analysts covering Jakks Pacific (JAKK) stock, 80% have rated it a “hold” while the remaining analysts have rated it a “buy.” The 12-month average target price for JAKK stock is $2.45, which reflects a 4.3% upside as of July 23.

For Take-Two Interactive (TTWO), 80% of the 20 analysts covering the TTWO stock have given it a “buy” rating. The other analysts have given it a “hold” rating. The 12-month average target price for TTWO stock is $131.00, which reflects 3.3% upside as of July 23.

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Highlights of the second-quarter results

Hasbro’s second-quarter revenue of $904.5 million and adjusted EPS of $0.48 crushed the consensus estimate of $833.1 million and $0.29, respectively. However, on a year-over-year basis, revenue and EPS declined 7% and 9.4%, respectively.

The company expects to be negatively affected in the near term by the Toys “R” Us bankruptcy and retail inventory troubles in Europe. Toys “R” Us was one of the leading customers for Hasbro and its rival, Mattel.

Hasbro is expanding its presence around the globe—especially in emerging markets. It’s also now focusing on newer products and digital gaming, including immersive experiences.

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