Build-A-Bear shares jump after record plunge

Build-A-Bear Workshop BBW.N shares rose 5.5% to $29.99 on Friday, rebounding after plunging 27% on Thursday for its biggest daily drop ever on a reduced revenue outlook.

Late Thursday, analysts at brokerage D.A. Davidson cut their price target on the stock to $37 from $60, saying the change is based on "a more conservative 9.5x multiple against our 2027 EPS forecast."

"This was Christopher Hurt’s first report as CEO, taking over on June 11th after more than 11 years building an operational track record as COO. The subsequent stock reaction indicates, in our view, that Hurt will have to prove himself to the street as the CEO," they wrote, noting that they are maintaining a "buy" rating on the stock.

The median analyst 12-month price target is $52.50, implying 76% upside from its current price.

The company earlier on Thursday lowered its revenue outlook to $500 million-$525 million and said it was unable to renew its partnership with Walmart WMT.O.

Even with Friday's gains, the stock is down about 51% year to date, compared with a 12.5% rise in the S&P 500 .SPX.