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 and $41 price target and FY24 and FY25 EPS projections, but further back-end loading our FY24 quarterly projections, as we believe 2Q results, which will be announced next Thursday, will reflect slightly higher than expected discounting and tough comparisons in what is historically the least important quarter for the company.</li><li>That said, we believe the decision to roll out Halloween earlier than previously, the potential to leverage demand for multiple offerings, the expansion into Mini Beans, and continued high-margin franchise and commercial expansion, should drive strong 2H results.</li><li>Further, with management continuing to aggressively repurchase BBW shares, the stock registering an almost 3% dividend yield and a valuation (even with our Street-low projections), of 4.4X our FY25 EBITDA we believe, the longer term risk/reward for BBW remains highly impressive, and we reiterate our Buy rating and $41 price target</li></ul>

We are reiterating our Buy rating and $41 price target and FY24 and FY25 EPS projections, but further back-end loading our FY24 quarterly projections, as we believe 2Q results, which will be announced next Thursday, will reflect slightly higher than expected discounting and tough comparisons in what is historically the least important quarter for the company.That said, we believe the decision to roll out Halloween earlier than previously, the potential to leverage demand for multiple offerings, the expansion into Mini Beans, and continued high-margin franchise and commercial expansion, should drive strong 2H results.Further, with management continuing to aggressively repurchase BBW shares, the stock registering an almost 3% dividend yield and a valuation (even with our Street-low projections), of 4.4X our FY25 EBITDA we believe, the longer term risk/reward for BBW remains highly impressive, and we reiterate our Buy rating and $41 price target

BBW: 2Q Preview: Remaining Conservative; Reiterate Buy, PT

Build A Bear Workshop

BBW: 2Q Preview: Remaining Conservative; Reiterate Buy, PT