Stock Watch: Moody gives HASBRO a lift to Positive!
Friday, August 15th, 2008 3:55pm CDTCategories: Company News, Digital Media News, Editorials
Posted by: First Gen Views: 26,964
HASBRO suffered a slight stint in stock prices recently when stock analysts placed the toy companies shares at full value. The average price of HASBRO stock fluctuated after that between $1.68, up or down. Today, a report by Moody's Investement Service (MIS) has affirmed the companies rating and switched its outlook on the Transformers creator to positive, stating the companies performance so far this year has beaten their expectations.
Citing CEO Brian Goldner's statement of venturing into new areas of entertainment, MIS believes HASBRO's ability to adapt to new trends in the industry is showing, such as with digital gaming.
But even with the affirmation, MIS has maintained its ratings table for HASBRO at Baa2. The companies global packaged good rating is at A3, which is two levels higher than the domestic. The difference in the two ratings are due to factors that "are particularly applicable to the toy industry to which Moody's ascribes significant weighting." But until HASBRO can show "clear evidence that core brands are experiencing sustained organic growth", a raise in the rating is unlikely.
Overall, HABRO shares are still holding strong, being at 45% plus their value from this time last year. Sales in the quarter were up 13 percent to $784.3 million from $691.4 million. Hasbro stock fell 36 cents, or 0.91 percent, to $39.20 in midday trading on Friday.
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Credit(s): Moody's Investment Service