Needham & Company Sees Hasbro (HAS) Shares Rallying; Although 1Q EPS Misses Consensus, We Believe “Tough Print” Is Behind

Needham & Company maintains a 'Buy' on Hasbro (NASDAQ: HAS), PT $51.

Needham analyst says, "Hasbro’s 1Q’11 sales were flat, and EPS beat our (street low) estimate of $0.06, but missed consensus target of $0.17. However, we believe this is likely to have been the hardest quarter of the year to show growth, given high retail inventories at year end 2010. We expect strong growth in sales and EPS for the remainder of the year, especially in 2Q and 3Q, and expect the stock to rally during the strong quarters...We believe investment spending ahead of expected revenues caused the dip in profit, and expect profits to rise when this revenue is realized. We have left our 2011 EPS estimates unchanged, raised 2012 slightly and lowered 2013 slightly."

For more ratings news on Hasbro click here and for the rating history of Hasbro click here.

Shares of Hasbro closed at $44.40 yesterday.

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