Funko Gains on Upgrade at JPMorgan Based on Resilient Toy Demand
2022.06.23 17:22
Funko (FNKO) Gains on Upgrade at JPMorgan Based On Resilient Toy Demand
By Sam Boughedda
Shares of Funko (NASDAQ:FNKO) jumped more than 7% in early Thursday trading after JPMorgan analyst Megan Alexander upgraded the stock to Overweight from Neutral, increasing the price target to $28 from $22.
Alexander based the upgrade of the stock on four key reasons.
“We are upgrading FNKO to Overweight and raising our Dec 22 PT to $28 based on: (1) expected upside to Street 2022 revenue estimates (and the roll to 2023) given the strong content rebound with FNKO’s stable of evergreen properties (~67% of sales in 2021) providing a consistent ballast to the business; (2) the margin outlook flipping to positive from negative over the balance of the year with expansion expected in 2023; (3) the toy category’s resilience in recessionary periods, along with FNKO’s even lower price points (
