Pro Analysis

Big-headed vinyl dolls spell growth for pop culture toy maker Funko: Jefferies

Funko popup at Comic Con.
Ollie Millington | WireImage | Getty Images
Funko popup at Comic Con.

Toy maker Funko is starting to catch the eye of Wall Street analysts, as the company's pop culture merchandise positions it in a "growth niche," according to Jefferies.

The nearly 20-year-old company is set for consistent sales growth as younger fans look for ways to engage in their favorite pop culture, Jefferies analyst Stephanie Wissink wrote on Monday. She initiated coverage on Funko with a buy rating.

"We favor Funko's positioning as category manager for pop culture merchandise, across a growing platform of product classifications," wrote Wissink. "Mid-teens annual sales growth is supported by distribution, category diversification, and international markets."