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Investing.com - DA Davidson has reiterated its Buy rating and $7.00 price target on Funko (NASDAQ:FNKO), representing a 62% upside from the current price of $4.32, following the firm’s attendance at San Diego Comic Con last week. According to InvestingPro data, analyst targets range from $5.50 to $7.00, with consensus maintaining a Buy recommendation.
The research firm observed strong panel attendance for Funko at the event, with lines wrapping around the company’s booths, which it cited as evidence of the brand’s strength, particularly for exclusive products.
DA Davidson is adding Funko to its S.T.A.M.P.E.D.E. list under the "Equity/Debt Recapitalization" category, suggesting that Funko should sell its Loungefly segment and use the proceeds to pay down debt.
Despite maintaining its positive outlook, the firm is lowering its estimates for Funko based on competitor commentary regarding delayed retailer ordering, which it expects will impact Funko as well.
The firm’s maintained Buy rating comes as Funko continues to demonstrate brand strength with its core "Fanatics" customer base across various product lines and price points.
In other recent news, Funko, Inc. has executed an amendment to its credit facilities, providing financial covenant flexibility for the next two fiscal quarters. This amendment includes waivers for specific financial covenants for the quarters ending June 30, 2025, and September 30, 2025, amid concerns over tariffs. Additionally, Funko has undergone a leadership change with Cynthia Williams stepping down as CEO and board member. Michael Lunsford has been appointed as Interim CEO, a role he previously held from late 2023 to early 2024.
DA Davidson has reiterated its Buy rating on Funko stock, maintaining a price target of $7.00 following this leadership transition. Meanwhile, Texas Capital Securities has initiated coverage on Funko with a Buy rating and set a price target of $8.00. Despite challenges such as discretionary consumer spending and tariffs, Texas Capital Securities analysts expressed confidence in Funko’s valuation and potential growth opportunities. They highlighted a potential rebound in Hollywood-driven box office revenues and the launch of the online Pop! Yourself platform as positive factors for Funko’s market position.
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