Hasbro (HAS) is likely to issue an "initially conservative guide" when it reports its earnings next week, UBS Securities said in a note Tuesday.

The firm noted that foreign exchange headwinds, combined with this initial guidance, could result in low single-digit percentage growth for 2025.

The company's gaming portfolio will matter more in 2025 as it makes up around three quarters of its profitability, with "big questions" around underlying growth in Magic The Gathering and the outlook for Monopoly GO and broader digital gaming.

Market checks indicate that the Magic The Gathering Foundations sets were a "smashing success" in Q4, with "palpable excitement" around Marvel sets and Final Fantasy.

"We believe Magic outperformed in Q4, with upbeat '25E outlook for top line (Marvel sets), albeit with some pressure on margins as we head into '25E," the firm wrote.

UBS estimates Q4 net revenue at $1.03 billion, slightly ahead of the consensus forecast of $1.025 billion, while its EPS estimate of $0.31 is slightly below the Street's forecast of $0.32 per share.

UBS has a buy rating on the stock with a price target of $82.

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