Funko ‘should be up 25%, not down 25%,’ says DA Davidson

DA Davidson notes that Funko shares are down 25% due to CEO Brian Mariotti taking a leave of absence and and company having not reaffirmed guidance in concert with the news. However, the firm believes The Chernin Group has motivated the change and that Funko may get a new outside CEO for the first time ever, “which we think is a HUGE positive.” Given that the company given guidance for Q2 and 2023, any material change to that would have had to be disclosed, says the analyst, who argues that the stock “should be up 25%, not down 25%.” DA Davidson reiterates a Buy rating on Funko with a $20 price target on the shares.