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Hasbro (NASDAQ:HAS) rallied 7% thanks, in part, to its octogenarian game Monopoly. The digital version, anyway.
Monopoly Go is currently the highest grossing iOS app in the U.S. and should lift profit for the toymaker in 2024, Bank of America analysts Jason Haas and Elizabeth Suzuki wrote in a note. The game has made $200M in revenue since launching in mid-April.
“If Monopoly Go generates $500mn of revenue in its first year, we estimate this will contribute $60mn of revenue for Hasbro or $0.33 to EPS, largely benefiting 2024,” the analyst said.
Monopoly Go has social casino elements similar to Coin Master which hit its peak popularity in 2020 when the game generated $1.2B. Search interest in Monopoly Go has already reached 75% the level of Coin Master’s peak.
Dungeons & Dragons
Baldur’s Gate 3, which Hasbro earns royalty revenue from, is also “performing exceptionally well,” the analysts said. The role-playing game includes intellectual property from Dungeons & Dragons (D&D), which Hasbro owns. Baldur’s Gate 3 sold 2.5 million units during early access ahead of its August 3rd release on PC.
“Investors don’t fully appreciate Hasbro’s potential to generate high-margin licensing revenue from its strong IP library which includes Transformers, Power Rangers, GI Joe, My Little Pony, and many more,” BofA said.
The firm recently upgraded Hasbro to a Buy rating on the strength of its Lord of the Rings Magic set.
Shares have eight Strong Buy ratings, one Buy and two Sells. The stock is up nearly 10% year-to-date.
