Hasbro (HAS) raised its 2026 and 2027 estimates following upside in the company's delayed Q1 2026 10-Q, Morgan Stanley said in a late Wednesday note.
The analysts cited detailed segment disclosures showing continued strength in Wizards of the Coast and sustained momentum in Magic: The Gathering, along with encouraging progress on the previously disclosed cyber incident.
The analysts said full financial disclosure showed earnings ahead of expectations, with adjusted profitability also tracking above earlier estimates, adding that the update improved visibility into segment performance and reinforced strengthening underlying operating trends.
Morgan Stanley cited strong Wizards of the Coast growth led by Magic: The Gathering, with Consumer Products broadly stable, and said strength was the main driver of upside despite mixed performance elsewhere in the portfolio.
Management's commentary suggested recovery from the cyber incident is progressing, with systems being brought back online sequentially and some systems apparently already restored, while disruptions are expected to ease, supporting continued momentum higher FY26 and FY27 estimates, the report added.
Morgan Stanley maintained its overweight rating on the stock and raised its price target to $123 from $122.
Shares of Hasbro were up 1.5% in Thursday trading.
Price: $95.73, Change: $+1.72, Percent Change: +1.83%