Piper Jaffray upgraded Hasbro (NASDAQ: HAS) from Neutral to Overweight with a price target of $88, saying the reset is a chance to own for 2017.

Analyst Stephanie Wissink commented, "We are upgrading shares from Neutral to Overweight, with the pullback post-Q2 having reset the stock to a level we see as favorable to establish positions for holiday 2016 and full year 2017 drivers. We think momentum returns to the business, led by girls and games in the 2H, and balances into 2017 across both owned and partner brands. The content lineup should create an advantageous tailwind to further support worldwide share gains, and we expect the level of investment spend to moderate into 2017-18. Inventory is expected to remain elevated through Q3, staging for the global shipment cycle in Princess & Frozen and backing +DD growth in several core brands. We expect sales rates to tighten to POS in 2H; inventory clarity and derisking; and an upside case to resurface, justifying a similar multiple. Our $88 PT is based on 19x (unchanged) FY17E EPS."

The firm trimmed FY 2016 EPS from $4.03 to $4.00 and FY 2017 EPS from $4.65 to $4.61.

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Shares of Hasbro closed at $79.82 yesterday.