Skip to main content

Market Overview

This Analyst Says Bed Bath & Beyond Has 'Many New Tools In The Basket'

Share:
This Analyst Says Bed Bath & Beyond Has 'Many New Tools In The Basket'

Home goods retailer Bed Bath & Beyond Inc. (NASDAQ: BBBY) has "many new tools in the basket" that position the home goods retailer to achieve its 2023 profit objectives, according to BofA Securities.

The Bed Bath & Beyond Analyst: Curtis Nagle upgraded Bed Bath & Beyond from Neutral to Buy with a price target lowered from $55 to $38.

The Bed Bath & Beyond Thesis: Bed Bath & Beyond's stock has fallen sharply from its 52-week high of $53.90 and investors should take advantage of the dip, Nagle wrote in the note. Led by a new management team, the company should show growth in 2021 and hits its 2023 target of $850 million to $1 billion.

Management also deserves credit for divesting its non-core assets that generated more than $600 million in cash and a commitment to continue closing underperforming stores. This puts the company in a strong enough position to both invest in growth initiatives and return capital to investors.

Related Link: 2 Analysts Downgrade Bed Bath & Beyond, Stock Still Pops 30%

The future of Bed Bath & Beyond stores will look different through remodels and a merchandising overhaul with a focus on higher-margin owned brands. The company expects this will translate to topline, earnings and new customer growth.

"The most consistent pushback from clients is BBBY's underperformance to peers and tough industry 2H21 compares, but BBBY has a slew of growth initiatives and margin boosters in the works that we do not believe are fully appreciated or believed yet," the analyst wrote.

BBBY Price Action: Shares of Bed Bath & Beyond hit a session high of $30.66 shortly after the bell, but traded lower by 4.6% to $27.67 at publication time.

(Photo: Anthony92931 via WikiCommons)

Latest Ratings for BBBY

DateFirmActionFromTo
Apr 2021Telsey Advisory GroupMaintainsMarket Perform
Apr 2021KeybancMaintainsUnderweight
Feb 2021Odeon CapitalUpgradesHoldBuy

View More Analyst Ratings for BBBY
View the Latest Analyst Ratings

 

Related Articles (BBBY)

View Comments and Join the Discussion!

Posted-In: BofA Securities Curtis Nagle retail retailersAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com