Image source: Shutterstock

Highlights

  • Goldman Sachs shifts Hasbro’s rating from “Neutral” to “Buy” on growth expectations.
  • Analysts cite Wizards of the Coast as a key driver for future profit expansion.
  • New price target of USD85 implies potential 21% total return including dividends. 

Goldman Sachs has upgraded Hasbro, Inc. (NASDAQ:HAS - Get Free Report) to a “Buy” rating from its previous “Neutral” stance, while lifting its price target to USD85 from USD66. The firm’s revised outlook reflects optimism about Hasbro’s growing digital and tabletop gaming division and the resilience of its core toy business. Following the upgrade, Hasbro shares rose approximately 2% in pre-market trading, reaching USD75.28. 

In its research note, Goldman pointed to the performance of Wizards of the Coast, Hasbro’s division behind popular franchises such as Magic: The Gathering and Dungeons & Dragons. The brokerage expects that new Universes Beyond releases in the Magic franchise will fuel both tabletop and digital gaming revenue, while Exodus—the first self-published video game tied to the franchise—is scheduled for release next year, adding another potential revenue stream. 

The report also highlighted that Hasbro’s traditional toy segment could fare better than previously anticipated. Factors contributing to this view include easing tariff pressures, potential market share gains, and price increases that could help sustain profit margins. These developments, according to Goldman, leave Hasbro in a position to exceed consensus expectations for revenue, profit, and free cash flow beginning in 2026. 

Wizards of the Coast accounted for nearly half of Hasbro’s operating profit last year, underscoring its significance to the broader business. Goldman noted that the stock currently trades at roughly 9.5 times its forecast for adjusted 2026 EBITDA, suggesting the market may be undervaluing the growth potential inherent in Hasbro’s diversified portfolio. 

The brokerage also flagged opportunities for further debt reduction and increased shareholder returns if Hasbro’s cash generation improves in line with projections. Goldman’s new price target of USD85 implies an estimated 21% total return for shareholders, including dividends. 

As Hasbro moves forward, investors are likely to watch closely for updates on product launches, performance of its gaming segment, and broader trends within the toy and entertainment markets. While Goldman’s upgrade signals a shift in sentiment, the company’s ability to deliver on these forecasts remains a key factor for future stock performance.