Hasbro Inc (NASDAQ:HAS) ( Hasbro Inc (NASDAQ:HAS) ) could see further earnings growth as demand for Magic: The Gathering strengthens and cost pressures prove more manageable than feared, prompting UBS to raise its price target to $137 from $120.
The broker raised its 2026 earnings per share estimate to $7.20 from $6.16, excluding the benefit of tariff refunds, following strong third-quarter performance, and increased its 2027 forecast to $7.23 from $6.83.
UBS expects further support from Magic: The Gathering , the trading-card game owned by Hasbro's Wizards of the Coast division, as player numbers, distribution and digital engagement expand, with the company targeting annual growth through 2028 and beyond.
The broker sees scope for fourth-quarter results to exceed expectations, citing strong Magic demand , solid execution in toys and manageable inflation, despite a shift of about $40 million in revenue into later periods.
Hasbro's Magic business has delivered underlying operating margins of about 49% to 50%, while its Hobbit-themed release performed like a major product launch and back-catalogue sales have already exceeded the full-year 2025 total.
UBS expects Hasbro's 2027 earnings growth to be broadly flat on a reported basis, but forecasts mid-single-digit growth after adjusting for the one-off tariff refund in 2026, with higher marketing costs and video-game launches weighing on margins.
The broker said inflation in raw materials was less concerning than feared, with long-term supply contracts limiting the impact of higher oil prices, while the annualisation of a 12.5% China tariff could provide additional margin support.
UBS raised its price target while keeping its valuation multiple unchanged at about 17 times forecast 2028 earnings, reflecting stronger earnings estimates and confidence in Hasbro's growth prospects.
