We are upgrading our recommendation on Hasbro (HAS) to Outperform. The company’s fourth quarter earnings were well ahead of the Zacks Consensus Estimate, reflecting a better-than-expected growth in revenue.
Most of its product lines, especially its movie-based toys, experienced strong demand. Its strong product line-up and strategic association with Discovery, Universal Pictures and Electronic Arts promise good things for investors. Additionally, the company’s meaningful international growth opportunity and its expenses management efforts augur well.
However, the slow economic recovery should limit significant top line expansion in the near term. Also, since the company generates a substantial amount of revenues from outside the U.S., its results are sensitive to foreign exchange fluctuations.Zacks Investment Research
