Hasbro's (HAS) bull case remains intact even after its shares pulled back amid a guidance reiteration and a "sizeable" Q1 beat, Morgan Stanley said in a Wednesday note.

"We view the pullback as a buying opportunity, with the bull case intact, underpinned by continued proof points of growth durability with compelling asymmetric risk/reward," it said.

The report pointed the sharp pullback to commentary on tight trading card capacity, which could limit the company's ability to chase incremental demand later in the year, particularly Q4.

The note said this has introduced some uncertainty into the near-term setup, with the capacity question potentially lingering as an overhang.

"Given the strength of the Magic ecosystem and strong loyalty/switching costs, we would expect that demand to

ultimately be captured," the report said.

Morgan Stanley raised its price target to $124 from $123 and kept its overweight rating on the stock.

Price: 88.40, Change: -0.20, Percent Change: -0.23