UPDATE: Bank of America Upgrades Bed Bath & Beyond on Positive Margins

In a report published on Friday, Bank of America analyst Denise Chai upgraded Bed Bath & Beyond BBBY from Neutral to Buy and raised the price target on the company from $75 to $82.

In the report, Bank of America stated, "Trading on a ~20% discount to its 5-year avg of 15x P/E, we think BBBY's risk- return profile looks attractive and are upgrading to Buy. Given our more positive view, we think a higher multiple is warranted and raise our PO to $82 (14.5x 2014 P/E, vs.13x prior). BBBY shares have underperformed (+17%) both WSM (+68%) & PIR (+49%) since LY. As one of the least expensive housing plays, BBBY was also one of the most resilient during last week's housing sell-off, which gives confidence that the lows have been tested."

Bed Bath & Beyond closed on Thursday at $70.15.