UPDATE: Goldman Sachs Reiterates Neutral Rating, Lowers PT on Bed Bath & Beyond

In a report published Friday, Goldman Sachs Group reiterated its Neutral rating on Bed Bath & Beyond BBBY, but lowered its price target from $70.00 to $66.00. Goldman Sachs noted, “BBBY's sales mix, profit mix, and margin drivers are quite opaque, given limited disclosure. However, we do have the tools to assess the firm's outbound emails, and note more marketing creativity of late. Historically, BBBY did not advertise, save for very functional coupons; its assortments and presentations were supposed to sell themselves – and they did. With email, however, it can advertise at essentially zero marginal cost. Its early outbound emails served much the same purpose as its coupons. Recently, the firm has been developing its marketing flair in our view; its emails have been more story-driven, thematic, and colorful. Perhaps BBBY has a long way to go in adjusting to a price transparent world, and its recent performance suggests that the process is painful. That said, movement on the marketing front is a step forward.” Bed Bath & Beyond closed on Thursday at $58.16.