Hasbro, Inc. (NASDAQ: HAS) shares were moving higher Monday after BMO Capital Markets upgraded the toymaker.
While there’s no change in the fundamental outlook for Hasbro, it could get a boost from major movie tie-ins this year, Johnson said in the Monday upgrade note.
“The stock has now entered the 'Frozen 2' hype cycle,” the analyst said, referring to the upcoming sequel to the massively successful animated fairy tale film 'Frozen.' The sequel is set for a November release, and Hasbro holds the main toy license for the franchise.
Other movie tie-ins for the company that could pay off this year include "Captain Marvel," "Avengers," "Ugly Dolls" and "Star Wars IX," among others, he said.
Investors could be buying Hasbro on the strength of recent reporting from another toy company, Funko Inc. (NASDAQ: FNKO), which recently reported strong fourth-quarter earnings and a positive 2019 outlook, Johnson said.
Hasbro also could benefit from investors having a sense of relief that last year’s big disruption in the toy market — the liquidation of Toys R Us — may have played out, in BMO's view.
Hasbro shares were up 1.92 percent at $89.71 at the time of publication Monday.
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Latest Ratings for HAS
|Mar 2019||BMO Capital||Upgrades||Underperform||Market Perform|
|Feb 2019||BMO Capital||Maintains||Underperform||Underperform|
|Feb 2019||Wells Fargo||Maintains||Market Perform||Market Perform|
View More Analyst Ratings for HAS
View the Latest Analyst Ratings
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