Goldman Sachs Lowers Price Target for Hasbro; Expects Decline (HAS)

Goldman Sachs lowered their price target for toy company, Hasbro, Inc. (HAS) Monday.

Analysts from Goldman Sachs have lowered their price target for Hasbro from $34 to $32 Monday. This price suggests a 18% decrease from the stock’s closing price of $39.30 on Friday, and 0.3% increase from the YTD price of $31.89.

Goldman Sachs noted, “We see downside to both consensus revenue and EPS expectations looking forward. We are 3%/12%/14% below consensus on EPS for 2012-2014. (1) We now more firmly believe that Games and Puzzles, HAS’s second-largest division at 25% of sales, is firmly in secular decline. We were previously too dismissive of this dynamic. (2) We believe Boys Toys, HAS’s largest division at 40% of sales, is currently over-earning and may decline this year and next. The three largest brands in that division (Transformers, Beyblades and Nerf) are all currently declining in the US. (3) In the absence of revenue growth, we believe margin expectations may also be at risk due to de-leverage on fixed costs.”

Hasbro shares were down -$1.63 or -4.15% during premarket trading Monday. Going into this morning, the shares have gained slightly over 27% YTD.

The Bottom Line
Shares of Hasbro (HAS) have a 3.66% dividend yield, based on Friday’s closing stock price of $39.30. The stock has technical support in the $36-$37 price area. If the shares can firm up, we see overhead resistance around the $43 price level.

Hasbro, Inc.(HAS) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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