The management of toy maker Hasbro, Inc. (HAS) has positioned the company for long-term success, says analysts at KeyBanc. However, lack of near term catalysts caused the analysts to downgrade the stock.
Hasbro shares have been performing strong recently, up 17.5% year-to-date. But the stock seems to have hit its ceiling and a future run up in price may be limited, says KeyBanc. Because of this, the analysts downgraded HAS from “Buy” to “Hold.”
“While we believe management has taken the necessary steps to better position the Company for future long-term success, through segment restructuring and cost initiatives, we anticipate the real benefit of those actions as well as a more robust product line to be more impactful in 2014 and beyond,” a KeyBanc analyst comments. “As such, we do not foresee near-term fundamental upside to earnings and therefore view the current valuation, now at more historical levels, as reasonable.”
Looking forward, KeyBanc expects Hasbro to earn $3.00 per share in 2013 and $3.15 per share in 2014.
Hasbro shares were inactive during pre-market trading on Wednesday. The stock is up +19.81% over the past twelve months.
The Bottom Line
Shares of Hasbro (HAS) have a dividend yield of 3.80% based on last night’s closing price of $42.15 and the company’s annualized dividend payout of $1.60 per share.
Hasbro, Inc. (HAS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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