Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity research on small cap consumer names.

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating, raising our price target to $75 (from $65) and increasing our projections after Build-A-Bear registered record 2Q results and handily beat their own guidance and Street expectations, driven by impressive product offerings, expansion of key items such as Mini Beans, Giant "furrry friends," Sanrio and further growth in international and third party revenue.</li><li>Further, with momentum continued strong into the key Halloween season, management raised top and operating margin guidance for FY26.</li><li>With the company remaining cash rich and focused on returning capital to shareholders, we believe BBW remains one of the best investment opportunities in the consumer sector, and we are raising our price target for BBW to $75 (from $65), 10.6X our FY26 EBITDA projection, and reiterating our Buy rating.</li></ul>

We are reiterating our Buy rating, raising our price target to $75 (from $65) and increasing our projections after Build-A-Bear registered record 2Q results and handily beat their own guidance and Street expectations, driven by impressive product offerings, expansion of key items such as Mini Beans, Giant "furrry friends," Sanrio and further growth in international and third party revenue.Further, with momentum continued strong into the key Halloween season, management raised top and operating margin guidance for FY26.With the company remaining cash rich and focused on returning capital to shareholders, we believe BBW remains one of the best investment opportunities in the consumer sector, and we are raising our price target for BBW to $75 (from $65), 10.6X our FY26 EBITDA projection, and reiterating our Buy rating.

BBW: 2Q Another Record; Raising Projections & PT to $75; Reiterate Buy

Build A Bear Workshop

BBW: 2Q Another Record; Raising Projections & PT to $75; Reiterate Buy