ISI Group Maintains Hold, PT of $63 on Bad Bath & Beyond

ISI group reiterates its Hold rating and target price of $63 on Bad Bath & Beyond

as comps deceleration is offset by ad reductions and fewer markdowns. ISI Group says, "Comps remain positive, gross margins are up (surprisingly still), SG&A leverage is robust, and BBBY ramped the buybacks. Say what you will on how BBBY got there, it delivered 28% EPS growth. Comps are slowing, but remain healthy. Gross profit continues to defy expectations and was flattish despite negative mix shift and inventory acquisition headwinds. SG&A leverage was solid. The acceleration in buybacks to $325mn was encouraging, above the $250mn pace BBBY had been running at." BBBY closed at $61.43 per share on Wednesday.