UPDATE: Citigroup Downgrades Hasbro to Sell on Secular Struggles

Citigroup lowers its rating on Hasbro HAS from Neutral to Sell and reduces its price target from $36 to $31. Citigroup notes, "Based on our latest checks, we believe it will be difficult for Hasbro to achieve sales growth in 2012 (vs consensus of +1%) given weakness within its Games business as well as Girls. In addition, Nerf, Beyblades, and Preschool are likely to be flat for the year at best. The big wildcard has been movie related properties and while we've seen favorable box office results from Avengers, we think this property will only generate $150-$200mm in toy sales for the year (vs recent street ests of $300-$500mm). Spiderman toys are getting traction (ahead of 7/3 release), but are likely to be quickly dampened when Batman is released on 7/20. We'd expect Spiderman toy sales to be around $200-$250mm. Battleship has also been a disappointment in our view." HAS closed at $32.97 on Tuesday.