Shares of toymaker Hasbro (NASDAQ:HAS) popped more than 5% in early trading on the Nasdaq today after analysts at BMO Capital upgraded the stock to outperform with a $90 price target. Shares have since settled down to about a 3.7% gain as of 12:15 p.m. EDT.
But what, exactly, did BMO say that has Hasbro investors so excited?
StreetInsider.com has the details. According to the analyst, Hasbro's toy sales are benefiting from parents trying to entertain children stuck at home during the pandemic. The toy industry in general is enjoying an "improving outlook" these days, and Hasbro's "good brand positioning" is helping it grab a good share of the growing toy sales.
Even with absolute lockdowns mostly a thing of the past in America, BMO sees the trends that prevailed during the worst of the pandemic continuing in its tail end. "Major mass and online retailers are positive about the upcoming [holiday] season," the analyst said, and are placing "solid orders" with toy producers such as Hasbro.
Consumers appear to be "getting off to an early and strong start" shopping for Christmas, too, validating retailers' decisions to order more toys, and BMO's decision to upgrade Hasbro stock.