US retailers including Target (TGT) are increasing exposure to trading cards, while delaying holiday orders, shifting revenues for toymakers like Hasbro (HAS) and Mattel (MAT) from Q3 into Q4, BofA Securities said Friday.
Target continues to move into trading cards, such as "Magic: The Gathering," and sales are up about 70% year-to-date and on pace to exceed $1 billion in 2025, BofA said. Hasbro is also positioned to benefit, with strong demand supported by new set releases, a growing player base, and expanded distribution, the firm said.
With retailers delaying holiday orders due to consumer uncertainty, Mattel faces near-term pressure, BofA said, cutting its Q3 EPS estimate for the toy maker to $1.02 from $1.08. For Hasbro, BofA sees consumer products revenue down 3.5% in Q3 rebounding to a 1.0% gain in Q4.
Hasbro's diversification into video games, including its planned 2026 launch of "Exodus," positions it to capture faster growth relative to traditional toys, BofA said.
Price: 88.62, Change: -0.80, Percent Change: -0.89
Comments