Hasbro's (HAS) strong Q4 results indicate the "durability" of its growth profile, with drivers like expanding partnerships and continued momentum of its Wizards of the Coast subsidiary, Morgan Stanley said in a note Wednesday.

"Positive estimate revisions should persist in the short-term," Morgan Stanley said, noting additional catalysts such as secular tailwinds for Hasbro's core categories and potential licensing opportunities.

The brokerage increased its 2026 and 2027 estimates for Hasbro. Morgan Stanley now expects 2026 earnings per share of $5.85 and sales of $4.99 billion, compared with its previous forecast of $5.69 and $4.78 billion, respectively.

For 2027, the brokerage expects EPS of $6.43 and sales of $5.36 billion, compared with prior outlook of $5.95 and $5.06 billion, respectively.

Morgan Stanley raised its price target on Hasbro to $119 from $103, and maintained an overweight rating.

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