Hasbro (HAS) - Get Report shares are down after the toymaker said it would buy Entertainment One for $4 billion cash, but the drop may be overdone, a DA Davidson note on the purchase says.

Analyst Linda Bolton Weiser says the deal for Entertainment One,  (ENTMF)  the London entertainment studio with brands including Peppa Pig, will add to earnings per share and is a strategic match.

Weiser estimates that the deal is at least 22 cents, or 4%, accretive to its 2020 EPS estimate. 

"The acquisition will enhance HAS's preschool brand portfolio," she wrote. "EOne also adds proven TV and film expertise, which should enable HAS to more effectively unlock franchise economics across platforms.

"Top eOne executives have agreed to join the HAS team, including CEO Darren Throop. HAS will eventually take over the marketing of toys under eOne's brands." 

The biggest loser from the deal: Mattel (MAT) - Get Report , since a tieup between the company and Hasbro is now highly unlikely, according to Weiser and a note from analysts at Jefferies. 

Jefferies lowered its price target on Mattel to $10.50. Mattel shares on Friday are down 4.4% to $9.69 while shares of Hasbro, Pawtucket, R.I., are down 6.2% to $107.27. 

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