Funko pops after JPM turns bullish on resilient toy demand
23/06/2022 14:20
** Bobble-head maker Funko Inc's shares FNKO.O up ~7% at
$22.40 premarket after J.P. Morgan lifts rating to "overweight"
from "neutral"
** Brokerage raises PT to $28 from $25, representing a 33%
upside to stock's last close
** JPM analysts say FNKO is "cheap, defensive with an upside
to numbers," noting the toy category's resilience in
recessionary periods; says toy industry a "relative safe haven"
** FNKO's lower price points allows it to be a "guilty
pleasure for parents and fans even during times of economic
distress - JPM
** Says FNKO's strong portfolio of evergreen properties
provide stability to business as FNKO is not solely reliant on
theatrical hits
** JPM expects margin headwinds to diminish substantially
over 2022, as FNKO begins to lap higher freight and product
costs it saw in 2H21 and the benefit from price hikes catch up
** FNKO is rated "buy" on average among eight brokerages on
Refinitiv, with a median PT of $28
** YTD, Funko shares have gained ~12% as of last close
(Reporting by Deborah Sophia in Bengaluru)
((DeborahMary.Sophia@thomsonreuters.com;))