We are reiterating our Buy rating, projections and $58 price target for Build-A-Bear Workshop after visiting stores in Long Island and Connecticut. We believe the later Easter (April 20th versus March 31st last year) was a material positive for the company, driving higher sales of multiple Easter related items and allowing for Build-A-Bear to flow in more newness, leverage their Mini Beans offerings, expand the licensed products and add new "furry friends" to the mix. As such, we believe Build-A-Bear, in a period of materially negative investor sentiment on the consumer, is poised to drive solid overall 1QFY25 results, and, with BBW trading under 9X our FY26 EPS and offering a dividend yield of over 2.5%, offer a compelling risk/reward for investors; we reiterate our Buy rating and $58 price target.
