B. Riley starts Funko at Buy on ‘potential game changer’ launch

B. Riley analyst Eric Wold last night initiated coverage of Funko with a Buy rating and $10 price target. The analyst says the company’s operational and strategic improvements have created the “building blocks for a new senior management team to take the reins and drive profitability higher” in 2024 and beyond. The launch of the Pop! Yourself product on Funko’s website represents a “potential game changer” to both broaden the customer base and drive the direct-to-consumer mix and adjusted EBITDA margins materially higher in the years ahead as the flywheel takes hold with consumers, the analyst tells investors in a research note.