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Bank Of America, Morgan Stanley Comment On Bed Bath & Beyond's Earnings Miss

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Bed Bath & Beyond Upgraded, But Not On Fundamentals
Benzinga's Top Upgrades, Downgrades For May 12, 2017

After the market close on Wednesday, Bed Bath & Beyond (NASDAQ: BBBY) reported a miss on its first quarter earnings. Shares of the company are down over seven percent.

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

DateFirmActionFromTo
May 2017Loop CapitalUpgradesSellHold
Dec 2016Raymond JamesDowngradesStrong BuyMarket Perform
Dec 2016Loop CapitalInitiates Coverage OnSell

View More Analyst Ratings for BBBY
View the Latest Analyst Ratings

Posted-In: Bank of America Morgan StanleyAnalyst Color Earnings News Price Target Reiteration Analyst Ratings

 

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