UPDATE: Goldman Sachs Downgrades Bed Bath & Beyond to Sell on Valuation, Margin Compression

Goldman Sachs downgraded Bed Bath & Beyond BBBY from Neutral to Sell and lowered the price target from $66.00 to $56.00. Goldman Sachs commented, "We downgrade BBBY to Sell from Neutral, and reduce our 12-month target to $56 from $66 on a modest estimate reduction and lower valuation. We position BBBY as a Sell relative to our coverage, as it has only 6% absolute downside, compared to our covered universe which has on average 4% upside, excluding dividends. The firm is losing share, as margins decline; we believe online share incursions and price image are contributing to this challenge, and that BBBY's best-in-class visual and item merchandising do not translate well online; margins and sales productivity are still quite close to peak levels; and, acquisitions offer options to gain share, but no clear path." Bed Bath & Beyond closed at $59.78 on Friday.