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Investing.com - DA Davidson raised its price target on Build-A-Bear Workshop (NYSE:BBW) to $85.00 from $64.00 on Friday, while maintaining a Buy rating on the stock. The company’s shares, currently trading at $67.01, have surged 112% over the past year and are approaching their 52-week high of $70.01. According to InvestingPro analysis, the stock’s RSI indicates overbought territory.
The retailer reported better-than-expected results for both revenue and earnings, driven by strong customer traffic and improved margins from higher pricing and reduced promotional activity, with no negative impact on conversion rates. The company’s revenue reached $522.52M with a healthy gross profit margin of 56.32%. InvestingPro subscribers can access 12+ additional exclusive tips and comprehensive analysis for BBW.
Store growth emerged as a key performance driver during the quarter, particularly from Build-A-Bear’s international partners who are expanding into new markets and extending the brand’s global reach.
Following its strong second-quarter performance, Build-A-Bear raised its guidance for sales, profits, and store openings, noting that positive momentum has continued into the current quarter.
DA Davidson indicated that the company’s updated profitability guidance might be conservative, suggesting potential for additional upside beyond the revised outlook.
In other recent news, Build-A-Bear Workshop reported strong second-quarter results for fiscal year 2026, significantly surpassing earnings and revenue forecasts. The company achieved an earnings per share of $0.94, which exceeded the expected $0.74, marking a 27.03% surprise. Revenue reached $124.2 million, surpassing the forecasted $116.2 million. DA Davidson responded to these results by raising its price target on Build-A-Bear Workshop to $85 from $64, while maintaining a Buy rating. The firm highlighted the company’s strong quarterly performance, noting robust traffic and margin expansion due to higher pricing and reduced promotional activity. These factors did not negatively impact conversion rates, according to DA Davidson. The company’s strong performance in these areas contributed to the analyst’s positive outlook. These developments underscore the company’s ability to exceed market expectations.
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