As companies grapple with slowing growth and how to manage a potential downturn, JPMorgan says it’s optimistic about the outlook for the maker of vinyl figurines and bobbleheads, Funko. The firm upgraded the stock from neutral to overweight and gave it a $28 price target — about 33% off its closing price on Wednesday. JPMorgan pointed to Funko’s “strong content rebound,” easing margin headwinds, and resilience in periods of recession as drivers of its investment thesis. It also has attractive valuations and is trading at a deep discount to its peers in the toy industry, analyst Megan Alexander said in a note Thursday. ,[The toy] is a relative safe haven throughout the industry [a] The cyclical downturn coupled with FNKO’s lower price points made it more resilient,” she said, noting that it rose 7% in 2008 but was down 4% in 2009. “We would expect relative outperformance in a downturn because Parents have historically been reluctant to make the cut. There’s less risk of demand pushing up on toys during the recession, partly due to lower average price points/product durability, and given the phenomenon nature of the category,” she continued. Alexander said Funko’s low Price points are under $12. It’s particularly well prepared and items under $25 can do well too. Additionally, JPMorgan sees the decline in the company’s EBITDA margins to peak in the second quarter, Which is expected to expand in the second half of 2022 and into 2023. -CNBC’s Michael Bloom contributed reporting.