Davidson Lowered the Firm’s PT on Funko (FNKO), Kept a Buy Rating

Funko, Inc. (NASDAQ:FNKO) is one of the Best 52-Week Low Penny Stocks to Buy NowOn August 8, D.A. Davidson analyst Keegan Cox lowered the firm’s price target on Funko, Inc. (NASDAQ:FNKO) from $7 to $5, while maintaining a Buy rating on the stock.

The analyst maintained a Buy rating on the stock, noting the return of Michael Lunsford as Interim CEO, which is positive news for the company. He noted that Lunsford has experience in handling restructuring, which indicated that the company might explore strategic alternatives or continue restructuring. Cox believes that steps could position the company for future growth.

Davidson Lowered the Firm’s PT on Funko (FNKO), Kept a Buy Rating

A wide view of an aisle in a specialty retailer, filled with licensed pop culture products, vinyls and action figures.

Despite this positive news, Cox lowered the firm’s price target on Funko, Inc. (NASDAQ:FNKO) due to softer second-quarter results for 2025. During the quarter, the company’s net sales dropped from $247.7 million to $193.5 million. Moreover, the gross profit also fell to $62.0 million, with a lower gross margin of 32.1% versus 42.0% a year ago. Management noted that this was due to uncertainty coming from tariffs. The company expects the financial position to improve during the second half of the year; however, net sales are expected to be down by high single-digits compared to the second half of 2024.

Funko, Inc. (NASDAQ:FNKO) is a pop culture lifestyle brand that sells licensed consumer products featuring characters from movies, TV shows, video games, music, and sports.

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Disclosure: None. This article is originally published at Insider Monkey.