UPDATE: Canaccord Genuity Upgrades Bed Bath & Beyond to Buy on Cost Plus Catalyst
Canaccord Genuity raised its rating on Bed Bath & Beyond (NASDAQ: BBBY) from Hold to Buy and increased its price target from $71 to $75.
Canaccord Genuity noted, "BBBY shares have declined 15% since 6/20 when the company issued Q2 EPS guidance that fell short of expectations. … We view this as an opportunity for investors to buy a high-quality company just as the addition of Cost Plus becomes a potential growth lever. We believe Cost Plus' contribution to EPS will grow from $0.01 in F2012 to $0.32 by F2016. BBBY still has around $1B in cash following recent acquisitions which will support much-needed investments in technology and the return of capital to shareholders."
Bed Bath & Beyond closed at $62.78 on Friday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.