UPDATE: Canaccord Genuity Downgrades Bed Bath & Beyond, Reiterates on Limited Upside Potential

In a report published Wednesday, Canaccord Genuity analyst Laura Champine downgraded the rating on

from Buy to Hold, but reiterated the $84.00 price target. In the report, Canaccord Genuity noted, “We are downgrading shares of Bed Bath & Beyond from Buy to HOLD as we believe upside potential is limited amid the difficult near-term retail climate. Recent trends suggest the consumer is pulling back on discretionary purchases, with those that are still spending focused more on big-ticket investments. We expect BBBY will be more aggressive promotionally, including a greater online marketing push, amid this tough environment. We believe BBBY's e-commerce penetration can grow to 14% ($2B) over the next five years. There is risk to this outlook given that BBBY has historically been slow moving. We estimate e-commerce penetration has grown to only 2% ($218MM in F2012) in the 13 years since the original site launched.” Bed Bath & Beyond closed on Tuesday at $77.44.