Market Overview

Funko's 'Growth On Pace' Despite Weak Price Action

Funko's 'Growth On Pace' Despite Weak Price Action

In contrast to its poor stock price action of late, Jefferies expects imminent sales momentum and growth from Funko Inc. (NASDAQ: FNKO) in the fourth quarter and 2019. 

The Analyst

Jefferies analyst Stephanie Wissink reiterated a Buy rating on Funko with a $23 price target.

The Thesis

The retail location at Funko headquarters in Everett, Washington has been exceeding sales and improving external relationships, Wissink said in a Wednesday note. (See her track record here.) 

“Buyers are able to visualize more robust assortments, merch strategies and digital and marketing tie-ins.”

The toymaker views the retail store model as one that could be broadened as a hub for passionate fans that touches on merchandise, licensed content, news, influence and "derivative new-form commercable content," the analyst said. 

Jefferies is not modeling secondary revenue streams, but they could become measurable as soon as 2019 or 2020, Wissink said. 

The recent sell-off in Funko should facilitate a strong short- and long-term buying opportunity, she said.

The company faces little to no competition at scale, and there is no evidence of slowing demand for its core POP figures, which account for 60 percent of Funko's sales mix, the analyst said. 

“The content slate for 2019 looks strong and company continues to smartly tap the vault of properties that play to core consumer interests.”

Price Action

Funko shares were down 1.39 percent at $15.24 at the time of publication Wednesday.

Related Links:

Funko CEO Discusses 'Fortnite' Toys With Cramer

Funko Shares Plunge To New Lows — But Why?

Latest Ratings for FNKO

Jul 2019MaintainsBuy
Jun 2019Initiates Coverage OnBuy
Mar 2019MaintainsMarket PerformMarket Perform

View More Analyst Ratings for FNKO
View the Latest Analyst Ratings

Posted-In: Fortnite gaming Jefferies Stephanie WissinkAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


Related Articles (FNKO)

View Comments and Join the Discussion!

Latest Ratings

BCELInitiates Coverage On23.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

How Celeb Trainer Chris Powell Went From $200K In Debt To Professional Success

"The Black Experience In Cannabis" Event Hosted By The Congressional Black Caucus Foundation