Funko price target raised to $12 from $10.50 at DA Davidson

DA Davidson raised the firm’s price target on Funko to $12 from $10.50 and keeps a Buy rating on the shares. The firm’s discussion with the company’s new CEO Cynthia Williams indicated that she was impressed with the Buckeye, Arizona fulfillment center operations after the problems with transition into this facility was seen as a key reason for the gross margin collapse to 28% in Q4 of FY22 before that recovered to 40% in Q1 of FY24, the analyst tells investors in a research note. Buckeye’s positive culture and their initiatives to continue reducing cost per unit were cited by Williams, the firm adds.