D.A. Davidson analyst Keegan Cox maintained a Buy rating on Funko yesterday and set a price target of $7.00.
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Keegan Cox’s rating is based on the belief that Funko is effectively managing its leadership transition and strategic direction. The recent departure of CEO Cynthia Williams, attributed to differing expectations and strategies for growth, has led to the return of Michael Lunsford as Interim CEO. Lunsford’s previous experience in this role, particularly in navigating restructuring efforts, is seen as a stabilizing factor for the company.
Furthermore, Cox highlights that Funko is making progress in its covenant relief discussions, which is a positive sign for the company’s financial health. The absence of negative news in this area suggests that the situation is under control. Additionally, the potential for strategic alternatives or continued restructuring under Lunsford’s leadership could position Funko well for future growth, supporting the Buy rating.