NEW YORK (TheStreet) -- Shares of Hasbro (HAS) tumbled to close lower by 6.36% to $54.65 on Friday, after analysts at BMO Capital said toy sales appear weaker this holiday season and lowered its price target on shares to $55 from $57.
The firm maintained its "market perform" rating on the toy maker, and said that it believes industry sales appear to be soft for the holiday period.
Analysts at the firm added that the domestic toy industry has "taken a turn for the worse in the fourth quarter declining about 2% after being up nearly 4% over the first nine months."
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BMO Capital added that it thinks Hasbro will end up with high levels of unsold inventory which could increase risk of lower margins.
Similarly, the firm also cut its price target on shares of competing company Mattel (MAT) to $28 from its previous $30.
Separately, TheStreet Ratings team rates HASBRO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HASBRO INC (HAS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."