We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear Workshop with the company announcing 3QFY23 (October) results before the open on Thursday. We believe Build-A-Bear remains a key experiential winner for 3Q, driving strong results with an impressive offering of Halloween driven items, key online winners, product expansion to satisfy a growing cadre of adult collectors and materially expanding a new category (Build-A-Bear Buddies). Further, we believe there remains continuing store expansion opportunities from owned and partnered locations. Finally, while early, we believe the Glisten and the Merry Mission movie launch (on November 3rd) will serve as a strong 4Q catalyst. As such, we remain upbeat on the Build-a-Bear story and view the risk/reward, with BBW trading under 7X our FY24 EPS, as compelling. We reiterate our Buy rating and $41 price target for BBW.
