UPDATE: Bank of America Downgrades Bed Bath & Beyond to Neutral on Lack of Visibility

Bank of America reduced its rating on Bed Bath & Beyond

and lowered its price objective from $76 to $70. Bank of America said, "3Q12 results disappointed (again), with the Q3 comp coming in toward the low end of guidance and a lower tax rate providing a 3 cent benefit. With an increase in couponing, sales mix shift, and its recent acquisitions, BBBY is searching to find a new normal in terms of comps and margins, but until growth stabilizes, we expect valuations to remain depressed. Visibility is low at this point, with no near-term positive catalysts for meaningful reacceleration in sales or margin trends other than weaker comparisons in 2013. Despite our positive view on BBBY's longer-term outlook, we think it could remain a value trap until visibility improves and see better upside in PIR and WSM among home furnishings retailers." Bed Bath & Beyond closed at $60.28 on Wednesday.