UPDATE: Credit Suisse Downgrades Bed Bath & Beyond

In a report published Thursday, Credit Suisse analyst Simeon Gutman downgraded

to Neutral from Outperform, with a $78.00 price target. According to the report, BBBY has been overweight home improvement and housing related names on the belief that there remains pent-up demand for this sector. “We also believe that a significant driver of spending in this segment will be the gradual pickup in household formation as millennials move out of their parents' homes,” the report said. “However, we believe that the better near-term trade to play this trend remains the two home improvement names, HD and LOW, both of which will also benefit from the disintegration of Sears.” The report further asserted that many of the home furnishing names will be a later deriviative trade on the above. BBBY currently enjoyed a strong stock year in 2013, revoking the undervalued trade and with trends still weaker than hoped on both the top-line and gross margins, analysts do not envision enough upside to recommend the stock. BBBY closed Wednesday at $79.68.