Bank Of America, Morgan Stanley Comment On Bed Bath & Beyond's Earnings Miss
In response to the miss, Bank of America and Morgan Stanley have both issued notes detailing their position on the company.
Bank of America: Neutral, $63 PT
The analysts began by noting Bed Bath & Beyond missed on sales growth, EPS and comps. They continued to express concerns that the company will suffer from margin pressure for longer than previously expected.
In the concluding remarks, the analysts wrote, "While valuation remains inexpensive compared to peers, we remain Neutral on BBBY as we believe upside to shares will be limited until comps meaningfully accelerate."
Morgan Stanley: Underweight, $58 PT
The team at Morgan Stanley began, "We continue to view BBBY risk/reward as unattractive given expected margin growing pains as the business transitions to omni-channel."
The analysts noted the company has already seen an element of the margin pressure play out in the first quarter and anticipate it getting worse before it gets better.
Latest Ratings for BBBY
|Apr 2015||Cantor Fitzgerald||Initiates Coverage on||Buy|
|Apr 2015||Deutsche Bank||Maintains||Hold|
|Jan 2015||Oppenheimer||Upgrades||Market Perform||Outperform|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.