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Buy Hasbro dip on 'Frozen' dolls strength: Piper

Oli Scarff | AFP | Getty Images

Strong girls' toy sales for Hasbro will offset slowing demand from boys enough to justify buying the shares at these levels, Piper Jaffray said in upgrading the company's stock to overweight from neutral.

"The pullback post-Q2 [has] 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," Piper Jaffray's Stephanie Wissink wrote in a note to clients Tuesday.

Hasbro beat earnings expectations on Monday when its second-quarter revenue soared to $878.9 million from $797.7 million last year. However, investors were disappointed that the revenue of boys' toys only rose 4 percent versus its first quarter 24 percent growth, and as a result the company's shares traded down 6.6 percent Monday.

Here's where Wissink believes the stock is headed over the next 12 months.