Shares of Hasbro soared to a 10-month high today following an optimistic forecast from Bank of America. The bank cited the potential sales growth expected from Hasbro’s new digital game Monopoly Go and the highly anticipated videogame Baldur’s Gate 3.
As of now, the shares have surged 7.3% to $67.85, reaching their highest level since October when they briefly hit $68.49. The stock has seen an overall increase of approximately 11% since the beginning of the year.
Bank of America’s analysts believe that Hasbro’s Monopoly Go game could contribute an additional $60 million in revenue, assuming it generates $500 million in its first year. This projected boost in revenue is expected to primarily benefit Hasbro in 2024.
Furthermore, Bank of America has revised its earnings per share projections for 2023, 2024, and 2025 to account for the positive prospects of both Monopoly Go and Baldur’s Gate 3. The bank has also raised its target price to $90, up from the previous $85.
According to the revised forecast, Bank of America predicts earnings per share of $3.89 for 2023, up from the previous estimate of $3.87.
For 2024 and 2025, the revised projections indicate earnings per share of $5 and $5.34 respectively, reflecting an increase from the previously estimated figures of $4.80 and $5.18.
The strong sales outlook for Hasbro has delighted investors and market analysts alike, as the company continues to innovate and captivate audiences with its exciting new products.
-Sabela Ojea