CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month price target by $17 to $68, based on 17.0x our 2024 EPS estimate and in line with the company’s 10-year average forward P/E multiple of 18.8x. We lower our 2023 and 2024 EPS estimates by $0.50 to $3.50 and $1.00 to $4.00, respectively. HAS posts normalized Q3 EPS of $1.64 vs. $1.42, $0.05 below consensus estimates on revenues of $1.50B vs. $1.68B and $129M below estimates. By segment in Q3, Consumer Products declined 18% Y/Y while Entertainment declined 42%, and Digital Gaming increased 40% due to strength in Monopoly Go and Baldur’s Gate III. The slowdown in Entertainment was due to the writers’ strike. HAS expects the sale of eOne by end of the year. Q3 adjusted operating margin improved 670 bps Y/Y to 22.8% due to improvement in product mix in licensed gaming and cost savings. Even though we were caught offside on this quarter’s results, we believe this is a multi-year opportunity to buy shares and expect Digital Gaming to continue momentum while Consumer Products has little downside.