By Dhirendra Tripathi
Investing.com – Funko (NASDAQ:FNKO) shares were up 8% Thursday after BofA Securities (NYSE:BAC) dusted its previous ‘underperform’ rating to hand the stock a ‘buy’ with a $30 target.
The target is still 30% higher from the stock’s current level of $23. BofA raised its estimate for Funko’s 2021 EPS to $1.15 from $0.92 earlier.
BofA analyst Rafe Jadrosich attributed the double-notch upgrade to significant opportunity offered by Funko’s newly diversified revenue mix that now captures NFTs, games and toys.
The analyst also credited the faster-than-expected recovery in Europe and strength in Funko’s direct-to-consumer business for the upgrade.
The company last week reported a 38% jump in net sales to $189.2 million for March quarter. Net income rose to $16.8 million from $11.1 million.
For 2021, the company expects net sales to grow 33% to 38% and adjusted net Income to come between $52.5 million and $59.6 million.