UBS reiterated its Buy rating on Hasbro (NASDAQ: HAS) and maintained a $99.00 price target in the wake of the toymaker's stronger-than-expected fourth-quarter performance. According to UBS, the quarter was powered principally by unexpected strength in Hasbro's gaming portfolio alongside an uptick in its toy business.
The broker noted that guidance for Hasbro's Wizard segment - a mid-single-digit percentage revenue increase forecast for fiscal 2026 - is consistent with expectations and could allow for upside if the business outperforms. UBS also pointed to solid drivers within Hasbro's consumer products segment that support a return to growth, while flagging greater uncertainty in the second half of the year.
On profitability, UBS said Hasbro's operating profit margins for fiscal 2026 are tracking above expectations. That margin resilience comes despite a number of headwinds called out by the firm, namely incremental tariff costs, marketing expenses tied to the Exodus initiative, and higher royalty expenses in the toy business. UBS added that EBITDA is "nicely ahead of expectations."
Hasbro's reported fourth-quarter results for 2025 illustrated the strength UBS referenced. The company posted earnings per share of $1.51, surpassing an analyst consensus estimate of $0.95 by 58.95%. Revenue for the quarter reached $1.5 billion versus an expected $1.26 billion.
Following the quarterly release, other analysts adjusted their valuations. DA Davidson raised its price target for Hasbro to $110, citing a broad-based beat across segments that reflected strong sales and profit performance. Morgan Stanley also lifted its target to $119 and maintained an Overweight rating, highlighting what it described as the durability of Hasbro's growth profile.
Those upward moves in price targets, along with UBS's reaffirmation, point to heightened investor confidence in Hasbro's near-term financial trajectory. At the same time, UBS and others emphasize specific cost pressures and the potential for increased uncertainty later in the fiscal year, indicating that analysts see both upside and identifiable risks in the company's path forward.
Summary
UBS kept a Buy rating and $99 price target on Hasbro after better-than-expected Q4 results driven by gaming and improved toy sales. Fiscal 2026 margins and EBITDA are ahead of expectations despite tariff, marketing and royalty costs. DA Davidson and Morgan Stanley raised their price targets following the quarter.
Key points
- UBS reiterated a Buy rating on Hasbro and set a $99 price target, citing gaming outperformance and toy strength.
- Hasbro reported Q4 EPS of $1.51 versus an estimated $0.95 and revenue of $1.5 billion versus an estimated $1.26 billion; DA Davidson and Morgan Stanley raised their targets to $110 and $119, respectively.
- Fiscal 2026 operating profit margins and EBITDA are running ahead of expectations despite incremental tariff costs, Exodus marketing expenses, and higher royalty expenses.
Risks and uncertainties
- Heightened uncertainty in the second half of the fiscal year, as noted by UBS - this affects visibility for consumer discretionary and retail demand.
- Incremental tariff costs could pressure margins in consumer and toy segments.
- Exodus-related marketing spend and elevated royalty expenses in the toy business are weighing on profitability despite current outperformance.