DA Davidson raises Build-A-Bear Workshop stock price target on international growth

Published 04/08/2025, 17:28
DA Davidson raises Build-A-Bear Workshop stock price target on international growth

Investing.com - DA Davidson raised its price target on Build-A-Bear Workshop (NYSE:BBW) to $64.00 from $60.00 on Monday, while maintaining a Buy rating on the stock. The company, currently trading at $50.85 with a P/E ratio of 12.14, has delivered an impressive 98.2% return over the past year. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.

The research firm cited significant international growth potential for the specialty retailer, particularly through partner-operated store models that have shown recent success in markets like Italy. The company’s strong financial position, evidenced by a "GREAT" Financial Health score on InvestingPro, supports its expansion plans with moderate debt levels and liquid assets exceeding short-term obligations.

DA Davidson’s analysis identified approximately 1,600 toy stores across the five largest European economies that could serve as potential partnership opportunities for Build-A-Bear Workshop.

The firm estimates that when extrapolated to all of Europe, there could be around 3,000 toy stores, suggesting Build-A-Bear Workshop has the potential to quadruple its number of international partner-operated locations.

The new $64 price target represents a multiple of 14 times DA Davidson’s increased earnings per share forecast for fiscal 2026, with the firm describing Build-A-Bear Workshop as "an open-ended growth story globally."

In other recent news, Build-A-Bear Workshop reported first-quarter results for 2025 that exceeded both earnings and revenue expectations. The company achieved an earnings per share of $1.17, surpassing the projected $0.87, while total revenue reached $128.4 million, outpacing the anticipated $119.05 million. These results demonstrated robust performance across all segments and an increase in gross margin due to fewer discounts. Analysts at DA Davidson responded positively, with Michael Baker raising the price target for Build-A-Bear Workshop to $60 from $50, maintaining a Buy rating. The firm further adjusted its price target to $64, highlighting the company’s international growth potential, particularly in Italy. Build-A-Bear’s asset-light store model and the introduction of the Mini Beans product line are expected to contribute to future profitability. The company’s strategy of expanding through partner-operated stores continues to show promise, especially in international markets. These developments reflect a strong outlook for Build-A-Bear Workshop as it diversifies and expands its market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.