synopsis

The toymaker has said it is prepared to absorb an estimated $100 million to $300 million cost increase through various adjustments, including layoffs.

Citi upgraded its rating on Hasbro (HAS) to 'Buy' from 'Neutral' and called it "the biggest positive surprise of the post-Liberation Day environment to date", The FLY reported.

Citi's optimistic view on Hasbro, consistent with positive actions by a few other analysts, comes after the toy maker reported higher-than-expected first-quarter results and announced a "Playing to Win" strategy to offset the impact of tariffs.

The investment firm said its upgrade has less to do with the company's tariff exposure and more with the underlying momentum of its business, specifically Wizards of the Coast, for which guidance was raised 25% after just two months.

Moreover, the recent weakness in shares makes them attractive to buy, Citi added.

On Thursday, Hasbro reported revenue and profit that topped Wall Street estimates.

The company said it expects a gross impact of $100 million to $300 million from tariffs this year. However, it is prepared to absorb the costs through various adjustments, including those to the workforce.

Bank of America and Roth Capital raised their price targets while maintaining 'Buy' ratings on the company.

BofA raised its estimate for the company’s 2026 profit, given more certainty on Hasbro's ability to mitigate tariffs, the likelihood of continued upward consensus estimate revisions from Wizards of the Coast, and potential easing of China tariffs, according to The Fly.

On Stocktwits, retail sentiment rose to 'extremely bullish' from 'neutral' a week ago, with 'extremely high' message volume.

HAS sentiment and message volume as of April X | Source: Stocktwits

Several users posted favorable comments about the company after its earnings report.

Shares of Hasbro are up 9.1% year to date.

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