Hasbro (HAS) enters 2025 with momentum as its turnaround efforts start to pay off, with strong Q4 performance capping off an impressive year of profitability improvement, Morgan Stanley said in a Thursday note.

The report said Hasbro delivered 1,000 bps of operating margin expansion, eclipsing the 20% threshold well ahead of its original

plan, and positioning it to shift to the offense.

Morgan Stanley also pointed to visibility to continued upward revisions as the team proceeds to simplify the business, cut costs, invest in innovation, and drive core topline growth.

"HAS's earnings and cash flow potential remains underappreciated by the market today and it remains a preferred pick in our leisure coverage," the note said.

Morgan Stanley lowered its price target to $84 from $88, while maintaining an overweight rating.

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