UPDATE: Wedbush Assumes Coverage on Bed Bath & Beyond with Neutral Rating, $66 PT as Housing Slowdown Will Add Pressure

In a report published Thursday, Wedbush analyst Seth Basham assumed coverage on

with a Neutral rating, down from Outperform, and $66.00 price target, down from $86.00. In the report, Wedbush noted, “We assume coverage of BBBY with a NEUTRAL rating (from OUTPERFORM). Despite recent sales volatility and margin pressure, we continue to admire Bed Bath & Beyond's long-standing decentralized merchandising acumen that keeps customers coming back for core home goods and impulse buys. As the World Market assortment continues to roll into Bed Bath stores, there should be more reason for frequent visits besides 20% off coupons. At the same time, BBBY is tackling online competition head-on, with substantial investments in its omni-channel infrastructure that should help it level the playing field. All of that said, there is little visibility that these changes will significantly improve trends in the near-term. Furthermore, BBBY's core business is still highly influenced by housing market trends. Given our less optimistic housing outlook detailed in our industry report, Hope Springs Eternal or Housing May Not Blossom This Spring?, we temper our earnings expectations.” Bed Bath & Beyond closed on Wednesday at $68.02.