Build-A-Bear Workshop (BBW) PT Lowered to $70 at DA Davidson on Tariff Impact

DA Davidson analyst Keegan Cox lowered the price target on Build-A-Bear Workshop (NYSE: BBW) to $70.00 (from $85.00) while maintaining a Buy rating.

The analyst commented, "Shares of BBW are down nearly 15% today as the impact of tariffs on the P&L catches up to models, which means 2026 profit estimates will likely need to come down. However, Halloween was up double digits after posting a record year in 2024 and momentum has continued in 4Q. Merchandising efforts and higher price point products should help partially offset tariffs going forward. The longer-term, unit growth story remains intact, which should help drive margin expansion with increased sales penetration in our view...With longer-term drivers still in play, along with momentum rebounding in early 4Q, we reiterate our BUY rating. However, our price target does fall to $70 from $85 prior, as we adjust our model to better accommodate the impact of tariffs. This represents a 17x multiple against our 2026 estimates, which is a premium to toy peers, but below other vertically integrated retailers. Or 16x versus our 2027 EPS forecast, which is in line with the peer average."

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