We came across a bullish thesis on Hasbro, Inc. (HAS) on Substack by The Reservist. In this article, we will summarize the bulls’ thesis on HAS. Hasbro, Inc. (HAS)’s share was trading at $50.71 as of April 8th. HAS’s trailing and forward P/E were 18.44 and 11.99 respectively according to Yahoo Finance.
Hasbro represents a compelling investment opportunity rooted in its valuable portfolio of intellectual property, which includes enduring franchises like Magic: The Gathering, Dungeons & Dragons, Monopoly, Nerf, and Peppa Pig. It also holds exclusive toy manufacturing rights for Disney’s Marvel and Star Wars, placing it in a unique position to monetize IP through both direct product sales and strategic licensing. What differentiates Hasbro is the broad demographic appeal of its IP—particularly Magic and Dungeons & Dragons, which cater to an adult and family gaming audience with higher spending power. This shift in customer profile enhances monetization potential across physical and digital channels. After a challenging stretch marked by the collapse of retail partners like Toys “R” Us, pandemic disruptions, and missteps in its ambition to pivot into filmmaking, Hasbro’s current management is steering the company through a strategic turnaround. Key to this has been an increased focus on licensing underperforming brands, improving margins, and reducing inventory—moves that have hurt short-term top-line growth but strengthened profitability. Notably, recent digital licensing deals such as Baldur’s Gate and Monopoly Go have been highly lucrative and underscore the success of this new approach.
Despite meaningful progress in restoring the company’s fundamentals, the market has yet to reward Hasbro for this transformation. Shares remain undervalued, with a dividend yield of 5%—well above historical norms—implying investor skepticism that contrasts with the company’s improving financial trajectory. If Hasbro simply meets its conservative guidance, which includes a return to revenue growth next year, the stock could rerate to a more typical 3–4% yield, implying a fair value range of $70–$80 per share and offering 16–33% upside, excluding dividends. Over the next 18 months, major catalysts are lined up, including upcoming Marvel blockbusters like Captain America (released February 2025), a new Spider-Man, and two Avengers films in 2026 and 2027. These releases historically drive strong toy sales and could revitalize Hasbro’s consumer products segment, boosting both margins and earnings. Additional upside remains in Magic: The Gathering and digital licensing.
That said, headwinds remain. Management is guiding cautiously due to difficult year-over-year comparisons for hits like Monopoly Go and Baldur’s Gate, as well as softness in brands like Nerf. Broader risks such as tariffs and weakening consumer sentiment also weigh on the outlook. However, given the already low expectations baked into the stock, the risk/reward skew is attractive, with downside capped by a strong dividend and upside potential from successful execution.
Hasbro, Inc. (HAS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held HAS at the end of the fourth quarter which was 30 in the previous quarter. While we acknowledge the risk and potential of HAS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HAS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.