Deutsche Bank Sees Upside To Comps For Bed Bath & Beyond

In a report published Friday, Deutsche Bank analyst Mike Baker reiterated a Hold rating and $57.00 price target on

. In the report, Deutsche Bank noted, “BBBY reports 3Q14 EPS on 01/08 AMC and hence will be one of the first hardline data points regarding full holiday sales. Our comp estimate is 3.0%, vs consensus of 2.8% and at the high end of the 2.0%-3.0% guidance, but down slightly from 3.4% in 2Q. We wouldn't be surprised with upside as industry trends were stable at +1.9% vs +2.1% in 2Q14 and BBBY has a 240 bps easy comparison. Therefore, holding the 2-year stacked constant, BBBY would comp close to 6%. Our EPS estimate is $1.20, a penny ahead of consensus and the high end of the $1.17-$1.21 guidance. Each 1% comp upside would drive $0.01 upside to our EPS estimate. We maintain a Hold mainly on valuation.” Bed Bath & Beyond closed on Wednesday at $76.17.