UBS has reaffirmed a Buy rating on Hasbro (NASDAQ:HAS) and kept a $99.00 price target, pointing to the company’s capacity to build on the momentum of Magic the Gathering. The firm’s stance sits within a broader analyst range displayed in InvestingPro data, where targets span from $87 to $124. Hasbro shares were trading near $100 after delivering a 73% gain over the last year.
Investor focus, UBS noted, is clustered around a set of specific questions: can Magic the Gathering continue to grow from a substantially larger base; what new sources of growth will emerge; how meaningful are the digital opportunities; and whether Hasbro’s consumer products division can expand outside of a slate that is heavy on movie releases in 2026.
UBS highlighted several structural advantages for Hasbro. The firm sees the Magic franchise as a primary driver of upside and identifies digital gaming initiatives as a complementary source of growth. UBS also pointed to a strategic shift in the toy business toward adult consumers and noted opportunities to lift profitability through increased out-licensing.
Data shared via InvestingPro underscores the company’s margin profile: Hasbro reported a gross profit margin of 63.8% even though it was not profitable over the trailing twelve months. Analysts in that dataset expect a return to profitability in the coming year.
On market size and penetration, Hasbro’s internal estimate places the global total addressable market for Magic the Gathering at roughly 500 million consumers. About 50 million people currently interact with the Magic brand, which implies a penetration rate of roughly 10%.
UBS drew attention to distribution dynamics at the retail and hobby-store level. For a typical game store, only 20% to 25% of customers play Magic, and the title is still under-penetrated in many of the same channels where Pokémon is sold. The bank also said supply constraints have limited the ability of a material portion of hobby stores to expand their Magic-related offerings.
Shareholder returns and income characteristics were also noted. Hasbro has preserved dividend payments for 46 consecutive years, and the current yield stands at 2.8%.
Recent earnings and subsequent analyst moves
Hasbro posted stronger-than-expected results for the fourth quarter of 2025. The company reported earnings per share of $1.51, substantially ahead of the $0.95 analysts had projected, and generated revenue of $1.5 billion versus expectations of $1.26 billion.
Following the quarter, several brokerages adjusted their price targets. UBS held to its Buy rating and $99.00 target, calling out the performance of Hasbro’s gaming portfolio and toy business. DA Davidson raised its target from $80 to $110 but retained a Neutral rating. Morgan Stanley increased its target to $119 from $103 while maintaining an Overweight rating. These revisions reflect an improving analyst view of Hasbro’s near-term sales and profit performance.
Takeaways for markets and operators
- Hasbro’s gaming business, led by Magic the Gathering, is central to upside expectations and investor sentiment.
- Digital expansion and licensing remain key levers management and analysts point to for margin improvement.
- Distribution and supply constraints at hobby stores represent operational limits on near-term market expansion.
While the company’s recent results and margin profile have prompted renewed analyst support, several open questions remain about the durability and breadth of the growth trajectory.