Bank of America says Hasbro could fall 34% due to company ruining 'Magic: The Gathering' card game

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Hasbro is trying to squeeze extra money out of 'Magic: The Gathering' fans in the short term, Bank of America says.

Hasbro is trying to squeeze extra money out of "Magic: The Gathering" fans in the short term, Bank of America said. That could hurt the long-term business. Analyst Jason Haas downgraded the toy stock to underperform from buy as recent changes to the "Magic" cards brand amount to Hasbro "killing its golden goose." The analyst also slashed his price target on the stock to $42 from $73. The new target implies downside of 33.8% from Friday's close.

That comes as retailers turn to promotions for a wide range of products to try to move a glut of inventory as consumers roll back spending on goods coming out of the pandemic. Haas also said he is "concerned" about the company's decision to release a 30th anniversary set that includes four booster packs for $999. He said that is "excessively" high compared to a normal set pack's $5 price.

 

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