Build-A-Bear Workshop is set to win as adults get around to the fact that toys aren't just for kids anymore, according to DA Davidson.
Analyst Michael Baker initiated coverage of the toy retailer earlier this week with a buy rating.
Shares of Build-A-Bear have outperformed the broader market this year, rising more than 17%, while the S & P 500 is up 13%.
BBW YTD mountain BBW ytd chart Build-A-Bear also caters to older demographics, with teens and adults responsible for over 40% of sales in 2022 owing to numerous collectibles and licensing agreements, Baker noted.
"To us, this increases their total addressable market well beyond that $9B [global stuffed and plush toy] market and suggests a market share in the low single digit range."
Persons:
DA Davidson, Michael Baker, Baker, Michael Bloom