An oversupply of Hasbro Inc.’s “Magic: The Gathering” cards is hurting the ecosystem for the fantasy trading-card game, “destroying the long-term value of the brand” and threatening sales, BofA analysts said in downgrading the stock on Monday. Shares of the toymaker slid 9.2% during regular trading, putting the stock on pace for its biggest percentage decline since Oct. 26, 2020. Hasbro
was Monday’s worst performer in the S&P 500 Index.
Analysts at BofA downgraded Hasbro to the equivalent of “sell” from “buy.” They said card prices for “Magic” were falling after the company flooded the market with new releases. Big retailers were pulling back on orders, game stores were losing money on the game, and collectors were trying to offload their cards, the analysts said. “We’ve spoken with several players, collectors, distributors and local games stores and have become aware of growing frustration,” BofA analysts said in the note. “The primary concern is that Hasbro has been overproducing Magic cards, which has propped up Hasbro’s recent results but is destroying the long-term value of the brand.” “Magic: The Gathering” makes up around 15% of Hasbr …