UPDATE: Oppenheimer Upgrades Bed Bath & Beyond to Outperform, Raises PT on EPS Growth Potential

In a report published Thursday, Oppenheimer analyst Brian Nagel upgraded the rating on Bed Bath & Beyond BBBY from Perform to Outperform, and raised the price target from $71.00 to $92.00. In the report, Oppenheimer noted, “Bed Bath & Beyond represents, in our view, one of the best run and most dominant chains in Retail. Management has undertaken a number of strategic investments lately that have muddled near-term financials and limited EPS upside at the company. Q2 (Aug.) marks a turning point for BBBY whereby the chain begins to cycle past at least some of these investments. We are optimistic that as near-term pressures ease, the still solid underlying sales and EPS growth of BBBY will turn more apparent and investors will begin to award shares a higher multiple. We are lifting our rating on BBBY to Outperform. Our new $92 price target (up from $71) suggests upside of about 20% from current levels.” Bed Bath & Beyond closed on Wednesday at $75.94.