Build-A-Bear Workshop(US:BBW) ZACKS·2024-09-26 14:56Core Viewpoint - Build-A-Bear (BBW) shares have increased by 11.4% recently, with analysts suggesting a potential upside based on price targets, indicating a mean estimate of $39.67, which represents a 27.8% increase from the current price of $31.05 [1] Price Targets - The mean price target consists of three estimates with a standard deviation of $1.53, where the lowest estimate is $38 (22.4% increase) and the highest is $41 (32.1% increase) [1] - A low standard deviation indicates strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [4] Analyst Sentiment - Analysts show strong agreement in revising BBW's earnings estimates higher, with a 2.8% increase in the Zacks Consensus Estimate over the last 30 days, indicating positive sentiment [5] - BBW holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, suggesting a strong potential for upside [5] Limitations of Price Targets - Price targets can often mislead investors, as empirical research indicates they rarely predict actual stock price movements accurately [3] - Analysts may set overly optimistic price targets due to business incentives, which can inflate expectations [3] Conclusion on Investment Decisions - While price targets should not be the sole basis for investment decisions, the direction indicated by them can provide useful guidance [6]