Funko (FNKO) Stock: Why It Increased Over 8% Today

By Amit Chowdhry ● Jun 23, 2022
  • The stock price of Funko Inc (NASDAQ: FNKO) increased by over 8% today. This is why.

The stock price of Funko Inc (NASDAQ: FNKO) increased by over 8% today. Investors are responding positively to a bullish research report.

JPMorgan analyst Tami Zakaria upgraded Funko from a “Neutral” rating to an “Overweight” rating while increasing the price target from $25.

Zakaria upgraded the rating due to a few reasons:

1.) An expected upside to the Street 2022 revenue estimates (and the roll to 2023) given the strong content rebound with Funko’s stable of evergreen properties (~67% of sales in 2021) providing a consistent ballast to the business

2.) The margin outlook flipped from negative to positive over the balance of the year with expansion expected in 2023

3.) The toy category’s resilience in recessionary periods, along with Funko’s even lower price points (<$12) allows it to be a “guilty pleasure” for parents and “fans” even during times of economic distress

4.) An attractive valuation

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.