Shares of toy maker Hasbro have been under pressure this week after giving cautious fourth-quarter guidance, but one analyst thinks the recent selloff is an opportunity to buy.
Barclays' Felicia Hendrix raised her rating on the stock to "overweight", after having an "equal weight" rating since February 2015, but trimmed her price target to $110 from $111.
"We have believed for some time now that Hasbro was a well-run company with a strong portfolio of brands; however, valuation has kept us on the sidelines," Hendrix wrote in a note published Tuesday morning. "Following yesterday's selloff, we believe the shares now reflect an attractive entry point relative to our $110 price target."
Hasbro currently carries a slight discount to the broader market – trading at 17.9x next year's earnings, compared to 18.3x for the S&P 500, as of Monday's close.