Hasbro Inc. was downgraded Tuesday to neutral from overweight at Piper Jaffray on the analyst’s belief that the company’s shares are fairly valued on a seasonal basis. The price target remains at $88. “Among consumer product sectors, trading seasonality is highly pronounced in the toy industry, with stocks outperforming from January to May, volatile from June to September and typically vacillating postive/negatively surrounding the holidays based on product level catalysts and category drivers,” the bank wrote in a note. Analysts say there’s a “rally” around the third quarter, with December usually one of the worst performing months. Piper Jaffray analysts believe Hasbro is in a good position going into the second half of the year with Star Wars and Disney Princess businesses working in its favor, and said the multi-year view is positive. But they “are reluctant to further stretch expectations.” Hasbro shares are down 0.2% in Tuesday trading, but up 27.5% for the year to date. The S&P 500 is up 1.5% for the year so far.
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