Funko (FNKO) Weakness Is A Buying Opportunity - DA Davidson

DA Davidson analyst Linda Bolton Weiser reiterated a Buy rating and $32.00 price target on Funko (NASDAQ: FNKO) suggesting investors buy the weakness after a 21% drop in the share price after the September 16th spot secondary offering of 4M shares. However, she is also cutting 3Q19E and 4Q19E EPS by $0.04 each and 2019E EBITDA to $143M from $148M to be within the guidance range of $140M-$145M.

The analyst stated "From our discussion with CEO Brian Mariotti and President Andrew Perlmutter, we got the impression that FNKO has numerous avenues of growth, and their task is to prioritize the highest return opportunities. FNKO still has much opportunity to increase its mass shelf space. Target (TGT) never has less than 12 feet allocated to pop culture, and FNKO believes a 40-foot section could be possible (not all FNKO product). Walmart's (WMT) large stores have a 20-foot section (85% FNKO products), but about half the stores have less than 12 feet - greater than 12 feet is more effective because the section is large enough to draw customers toward it".

For an analyst ratings summary and ratings history on Funko click here. For more ratings news on Funko click here.

Shares of Funko closed at $22.09 yesterday.

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