BBW - Build-A-Bear Workshop: The Reasons Why We Downgrade To Hold
2024-06-12 23:18:25 ET
Summary
- BBW stock price has substantially dropped after missing both top- and bottom line estimates.
- Quarterly results show decline in revenues and earnings, impacted by weakening demand and macroeconomic environment.
- BBW stock currently fairly valued, not expected to outperform broader market; downgrade from "buy" to "hold" due to financial performance and macroeconomic concerns.
Build-A-Bear Workshop, Inc. ( BBW ) operates as a multi-channel retailer of plush animals and related products in the United States and internationally. We first wrote about BBW in September 2022 , when we assigned a bearish rating to the firm, primarily due to the unstable macroeconomic environment as well as the firm’s capital allocation decisions. Shortly after our writing, we were proven wrong. Stock price has substantially increased and the firm’s financial performance has remained strong. In February 2023 , we have upgraded BBW to a “buy” and we reiterated this positive view in July 2023 ....
Build-A-Bear Workshop: The Reasons Why We Downgrade To Hold