Hasbro price target raised to $59 from $52 at DA Davidson

DA Davidson raised the firm’s price target on Hasbro to $59 from $52 and keeps a Neutral rating on the shares. The firm notes Hasbro reported a Q1 2024 beat, but segment profit, ex. corporate, was $103M, only slightly above consensus profit of $89M. The tone was positive on supply chain, but the toy operating margin still fell to -9.2% from -6.8% in Q1 2023, despite huge close-outs last year. Despite the weak consumer and Christmas still far off, Hasbro hinted at raising guidance once it see Q2, Davidson adds. The firm expects 2024 free cash flow to exceed dividends by $91M, but there’s still no free cash flow guidance.