By Peet Serfontein & Khumbulani Kunene
We initiate a long position with a target price of $70.00 and a stop-loss of $55.00 (Risk/reward ratio 0.87:1).
Hasbro is a multinational toy and entertainment company. The company manufactures and markets toys, games, interactive software, puzzles, and infant products. Its products include a variety of games, namely traditional board, card, hand-held electronic, trading card, role-playing, and DVD games, as well as electronic learning aids and puzzles.
Hasbro is widely recognised for its extensive portfolio of popular brands including Monopoly, Nerf, Transformers, and My Little Pony. Hasbro has a significant relationship with Disney, producing merchandise for the entertainment giant's megabrands including Star Wars, Marvel (including Spider-Man and The Avengers), Ghost Busters, and Frozen, to name a few.
Technically, a developing ascending triangle pattern presents a promising investment opportunity (see the black converging trendlines on the main chart). This pattern signals the potential continuation of an upward price trend and is characterised by a flat resistance level at the top and a series of higher lows, highlighting increased buying pressure over time. As buyers steadily push the price upward, sellers remain at a constant level that can result in a breakout above the resistance - typically confirming a bullish view.
A price at a trough per the Elliott wave pattern, supports a bullish case (see the insert). Wave 1 appears to have established a higher trough, indicating the start of a potential new uptrend, and highlighting increased buyer interest and accumulation after a corrective phase.
A confluence of the 200-period simple moving averages (SMAs) also supports a bullish case. The confluence can be supportive, particularly when the stock price is trading just below these critical levels. These long-term moving averages often act as strong resistance areas and a break above them could trigger increased bullish momentum.
Muted upside price momentum per the MACD indicator, as well as the sideways to down trajectory of the on-balance volume (OBV) indicator, supports our bullish view.
| Share Information | |
|---|---|
| Share Code | HAS US |
| Industry | Consumer, durables and apparels |
| Market Capital (USD) | 8.5 billion |
| One Year Total Return | 16.80% |
| Return Year-to-Date | 10.38% |
| Current Price (USD) | 61.04 |
| 52 Week High (USD) | 73.46 |
| 52 Week Low (USD) | 54.05 |
| Financial Year End | December |
| The stock has seen double-digit growth over the past year and year to date, reflecting resilience in the price. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 4.01 | 4.10 | 4.61 | 4.99 |
| Growth (%) | 2.1 | 12.65 | 8.11 | |
| Dividend Per Share (USD) | 2.10 | 2.86 | 2.99 | 3.12 |
| Growth (%) | 36.33 | 4.33 | 4.45 | |
| Forward PE (times) | 14.48 | 12.99 | 12.24 | |
| Forward Dividend Yield (%) | 4.69 | 4.89 | 5.11 | |
| Moderate earnings growth is expected in the short-to-medium term and strong dividend growth is expected in the short term. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view
| Share Name and Position | MPWR US - Time exit (Close the position) |
CHTR US - Buy (Continue to hold) |
MU US - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 671.57 | 340.26 | 89.05 |
| Current | 632.97 | 375.01 | 94.18 |
| Movement | +2.1% | 10.2% | +5.8% |
| The trade reached its time exit date and we opted to close the position. |
A price in a developing symmetrical triangle pattern remains of interest. Remains just above its 200-day simple moving average. Fading upside price momentum is a concern.
Our profit target remains at $390.00 with a trailing stop-loss at $349.00. Exit the trade by 30 May 2025. |
A price developing a double bottom pattern remains of interest. Remains just below its 200-day simple moving average. Muted upside price momentum is a concern.
Our profit target remains at $116.00 with a trailing stop-loss at $83.00. Exit the trade by 7 May 2025. |
| Share Name and Position | STE US - Buy (Continue to hold) |
RJF US - Buy (Continue to hold) |
|---|---|---|
| Entry | 217.20 | 143.74 |
| Current | 221.78 | 145.71 |
| Movement | +2.1% | +1.4% |
|
An Elliott wave price that is forming a trough remains of interest. Dipped below its 200-day simple moving average. Fading upside price momentum is a concern.
Our profit target remains at $239.00 with a trailing stop-loss at $213.00. Exit the trade by 18 April 2025. |
A price in a developing inclining channel pattern remains of interest. Remains just above its 200-day simple moving average. Fading downside price momentum is supportive.
Our profit target remains at $165.00 with a trailing stop-loss at $137.00. Exit the trade by 23 July 2025. |
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