UPDATE: Bank of America Merrill Lynch Lowers PO on Bed Bath & Beyond to $75

Bank of America Merrill Lynch maintains a Buy rating on Bed Bath & Beyond

and lower its price target from $80 to $75. Bank of America Merrill Lynch notes, “BBBY's fundamentals remain solid, in our opinion. We view 2012 as a year of investment (particularly 2H) with continued gross margin pressure. However, we view these pressures as temporary and remain positive on the company's longer- term outlook, with growth to be driven by all concepts. The proposed Cost Plus acquisition is a strategic positive, in our view, in addition to enhanced sourcing capabilities from its more recently announced acquisition of Linen Holdings. As such, we reiterate our Buy rating.” Bed Bath & Beyond closed at $73.67 on Wednesday.