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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 Thursday, while maintaining a Buy rating on the stock. The company’s stock is trading near its 52-week high of $59.78, having delivered an impressive 114.72% return over the past year. According to InvestingPro analysis, the company maintains a GREAT financial health score.
The firm cited Build-A-Bear’s strong quarterly performance, which exceeded expectations on both revenue and earnings. The company reported robust traffic and margin expansion resulting from higher pricing and reduced promotional activity, without negatively impacting conversion rates. With a healthy gross margin of 55.55% and revenue growth of 6.09%, the company’s operational efficiency remains strong. InvestingPro subscribers can access 12 additional key insights about Build-A-Bear’s financial performance and growth potential.
Store growth emerged as the primary driver of results, particularly from Build-A-Bear’s international partners who are expanding into new markets and extending the brand’s global reach.
Build-A-Bear has raised its guidance for sales, profits, and store openings based on second-quarter strength, with momentum continuing into the current quarter. DA Davidson noted that the company’s profitability guidance might prove conservative.
The new $85 price target represents a multiple of 18 times DA Davidson’s forecast for Build-A-Bear’s earnings per share in 2026, reflecting the firm’s confidence in the company’s international growth potential.
In other recent news, Build-A-Bear Workshop Inc . announced its second-quarter results for the fiscal year 2026, which significantly exceeded expectations. The company reported an earnings per share (EPS) of $0.94, surpassing the anticipated $0.74, marking a 27.03% surprise. Revenue for the quarter reached $124.2 million, which was above the forecasted $116.2 million. These impressive results highlight the company’s strong performance in the recent quarter. Following the earnings announcement, analysts have been closely monitoring the company’s developments. The results have drawn attention from various investment firms, although specific upgrades or downgrades were not mentioned. Investors are keenly observing how Build-A-Bear will continue to perform in the upcoming quarters. These recent developments underscore the company’s ability to exceed market expectations.
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