Hasbro (HAS) is well-positioned to beat and raise in H2 as its fiscal year guidance for low-double-digit growth in the Wizards segment leaves room for upside in the latter half of the year, UBS Securities said.

Despite amortization expenses related to Exodus and Warlock and marketing spend of $50 million to $75 million for the Wizards segment, Hasbro is guiding better-than-feared margins for the Wizards next year.

The company shifting development into lower-cost regions with robust talent pools could drive a 25% reduction in digital spend by 2028, implying further upside to the full operating profit margin profile of the company heading into 2027 and 2028, according to the note Tuesday.

UBS said Hasbro's increased fiscal 2026 revenue, operating margin and EBITDA guidance should help ease investor concerns that the company had been too conservative about its outlook for the Wizards segment.

The investment firm said it has increased confidence in upside to its 2027 earnings estimate of $6.27 per share, citing improving visibility into Wizards growth, digital spending reductions and margin expansion.

UBS reiterated its buy rating on the stock, with a price target of $110 per share.

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