Build-A-Bear Workshop, Inc. (BBW-N)

Our PAST TOP PICK with BBW has triggered its stop at $39.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment gain of 19%, when combined with our previous guidance.  

We reiterate BBW as a TOP PICK.  Recently reported earnings beat expectations as margins increased, and EPS expanded by 38% thanks to 17 new store openings in Q3.  We like that cash reserves are growing as shares are bought back.  It trades at 12 earnings and supports a ROE of 42%.  We recommend trailing up the stop (from $32) to $39, looking to achieve $54.50 -- upside potential of 18%.  Yield 1.7%  Season's Greetings!

Our PAST TOP PICK with BBW has achieved its target at $40.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $29) to $32.

Our PAST TOP PICK with BBW is progressing well.  To remain disciplined, we recommend trailing up the stop (from $23) to $29 at this time.  

Following record second quarter earnings, we reiterate BBW as a TOP PICK.  There will be 50 new locations added in 2024 -- approximately a 10% increase.  Cash reserves are growing as management buys back shares.  It trades at 9x earnings and supports a robust 42% ROE.  They hold no borrowings under their revolving credit facility.  We continue to recommend a stop at $23, looking to achieve $40 -- upside potential of 21%.  Yield 2.3%

The well known brand is celebrating 25 years in the business.  Recently, reported earnings were below expectations, however, management reported Q1 2024 as the most profitable first-quarter of any pre-Covid year in its history.  It trades at 9x earnings and supports a 42% ROE.  Cash reserves are growing, while shares are bought back.  We recommend setting a stop-loss at $23, looking to achieve $39 -- upside potential over 35%.  Yield 0%