Funko drops as Goldman turns bearish on growth prospects
01/02/2023 14:56
** Funko Inc's FNKO.O shares down 4% at $11.62 in early
trading Weds after Goldman Sachs downgrades toymaker to "sell"
from "neutral"
** Brokerage cuts PT from $22 to Street-low $8.50, per
Refinitiv
** GS analyst team led by Stephen Laszczyk says co
well-positioned given broad portfolio of licensed toys, but
point to continued margin headwinds, loss of "significant large"
toy licenses, FX pressures
** Consensus currently expects FNKO to grow earnings at 50%
CAGR from 2022-2026, Goldman says, adding in order to achieve
this, it "will need to successfully execute against a relatively
complex set of initiatives"
** "We view the margin of error to meet consensus
expectations as relatively small for the company" - GS
** Avg rating among 8 brokerages is "hold" and breakdown is
1 "buy", 6 "hold", and Goldman with lone "sell", per Refinitiv:
median PT of $11.75 down from $26 on Nov 1
** On Nov 4, FNKO's stock plunged 59% after essentially
halving its FY22 adj profit forecast to 85-95 cents/sh
** Shares rose ~11% in Jan
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))