We are reiterating our Buy rating and $65 price target for Build-A-Bear Workshop with the company announcing 1QFY26 (April) results before the open on Thursday. We note our 1Q EPS projections are Street low for 1Q, as we believe the impact of tariffs, increased store expenses and discounting will be key negatives in the quarter, but will begin to abate, especially in 2HFY26. Further, we have seen signs management has begun to pull back the discounting focus, which should be a plus going into 2Q. As such, and with BBW now trading near its 52-week low and under 9X our FY 27 EPS, we believe the risk/reward has materially improved and we reiterate our Buy rating and $65 price target.
