US stock futures edge lower after S&P 500 hits record high; PCE data in focus
On Thursday, DA Davidson reaffirmed its Buy rating and $16.00 price target for Funko (NASDAQ:FNKO), ahead of the company’s financial report expected after the market closes on March 6th. Trading at $11.08, the stock has shown significant volatility, with a 75.5% gain over the past year despite recent weakness. According to InvestingPro data, the stock’s RSI suggests oversold conditions. The firm’s analyst, Linda Bolton Weiser, provided insights into the company’s performance and future expectations.
Weiser expressed confidence in Funko’s upcoming guidance, suggesting it may not fall short of market expectations. With current revenues of $1.05 billion and analysts forecasting a return to profitability this year, this optimism is based on the consensus estimate for 2025 sales growth, which has been adjusted to a year-over-year increase of 5%, down from the previous expectation of 8%. The analyst anticipates that Funko could set its guidance to low-single digit or low- to mid-single digit growth. For deeper insights into Funko’s financial health and growth prospects, InvestingPro subscribers can access exclusive analysis and additional ProTips.
Funko is projected to achieve positive sales growth in 2025 for the first time since 2022, when the company experienced a significant 29% growth. Weiser cited Bloomberg debit/credit card data to support the expectation of solid direct-to-consumer (DTC) sales growth in the fourth quarter of 2024. However, the outlook for the first quarter of 2025 is less promising, with DA Davidson estimating a 3% year-over-year decline in total sales, contrasting with the consensus forecast of a 6% increase.
The $16 price target set by DA Davidson is derived from a multiple of 23 times the firm’s estimated earnings per share of $0.70 for 2026. The reaffirmation of the Buy rating and price target comes as investors look forward to Funko’s financial report, which will shed light on the company’s recent performance and strategic direction for the coming year.
In other recent news, Funko, Inc. has made several significant announcements. The company reported a notable surge in direct-to-consumer sales during the fourth quarter of 2024, with a 33% increase, according to DA Davidson. This growth has led the firm to maintain a Buy rating on Funko shares, with expectations that the company will exceed market forecasts for the quarter. Additionally, Funko has expanded its Board of Directors by appointing Jason Harinstein, who brings extensive financial and industry experience to the role. Harinstein’s background includes serving as CFO at Collectors Holdings, Inc. and Flatiron Health.
In another development, Funko has named Glenn Abell as the new Senior Vice President of Sales for North America. Abell joins from Mattel (NASDAQ:MAT) and is expected to drive strategy and growth across various sales channels. Funko also announced a partnership with the NBA to introduce new customizable collectibles, coinciding with the NBA All-Star 2025 festivities. This initiative aims to enhance fan engagement with personalized figures featuring NBA team logos. Furthermore, despite improvements in its distribution center operations, Goldman Sachs has reiterated a Sell rating on Funko stock, citing caution about its valuation. These recent developments reflect Funko’s ongoing efforts to strengthen its market presence and operational efficiency.
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