Hasbro (HAS) could weather the impact of tariffs on its business, thanks to the strength in its gaming portfolio, UBS said in a note emailed Friday.

Even though the company's supply chain does not have the same flexibility as Mattel (MAT), the portfolio could offset tariff impact and drive upside to earnings estimates, the firm said.

UBS said it was raising its fiscal 2025 earnings estimate by $0.05 to $4.30 per share to account for upside in the Wizards of the Coast business segment, which publishes the collectible card game Magic: The Gathering.

The new estimate also accounts for Hasbro's Q1 beat, UBS said.

The company in April reported Q1 adjusted net earnings of $1.04 per diluted share, compared to the FactSet consensus of $0.67.

Revenue for the quarter was $887.1 million, compared with consensus of $771.1 million.

Hasbro has raised its outlook for the Wizard business to mid to high teens growth percentage, compared with 5% to 7% revenue growth previously. According to UBS, the guidance raise adds $90 million to $100 million to operating profit.

"We believe Hasbro's strategy of tightly managing inventory, combined with potential shelf space gains given broader disruption for the industry and the category (including private label,) leaves Hasbro nicely positioned heading into Q2 and H2," the firm said.

The firm has a buy rating on the stock with a price target of $82.

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