We are reiterating our Buy rating, $41 price target and projections for Build-A-Bear Workshop after visiting stores in Connecticut and Long Island. After a successful Halloween, Build-A-Bear switched the main store focus to the Glisten and the Merry Mission movie, which opened in a limited (100 door) theater run on November 3rd. The stores have also shifted to other traditional Xmas items, new and upcoming cinematic releases (Trolls) and key licensed characters (Sanrio and Stitch). With Black Friday not a material event for the company, the next key catalyst will be the shift of the Glisten movie to streaming sources, which we believe will occur in early December and should result in material increases in demand for the characters. As such, we believe the company remains well positioned for the Holidays, and we reiterate our Buy rating and $41 price target for BBW.
