Goldman assumes Funko, downgrades to Sell on execution risk

Goldman Sachs analyst Stephen Laszcyk downgraded Funko to Sell from Neutral with a price target of $8.50, down from $22, after assuming coverage of the name. The shares trade at a premium to its historical averages and near the high end of its relative valuation range versus the S&P 500, the analyst tells investors in a research note. This "rich" valuation is coupled with a high degree of execution risk to consensus growth expectations, Goldman contends. The firm says consensus estimates currently expect Funko to grow EBIT at 50% annually through 2026. In order to achieve this, Funko, "will need to successfully execute against a relatively complex set of initiatives," the analyst writes.