Barclays Maintains an 'Overweight' on Bed Bath & Beyond (BBBY); Expect Some Early Holiday Cheer for 3Q

Barclays maintains an 'Overweight' on Bed Bath & Beyond (NASDAQ: BBBY) price target of $70.00.

Barclays analyst said, "Following what appears to be a strong response to the company's holiday offerings, we believe there could be further upside to our estimates: Our 3Q 2011 EPS estimate of $0.89 is driven by continued strength in fundamentals and is above the high end of management guidance of $0.82-0.87/share. We believe there is upside potential to our estimate, as our analysis suggests the company has enjoyed favorable holiday sales thus far this season. We forecast 3Q same-store sales of 5% vs. a robust 7% comparison last year. We forecast EBIT margin gains of 89 bps, to 14.8%, attributable to a 13 bp gain in gross margin and 76 bps of expense leverage."

"Reiterate Bed Bath as one of our top picks in U.S. Retail Hardlines: We believe Bed Bath has been and continues to be one of the most consistent retailers across the U.S., not only in Retail Hardlines, but other areas of retail as well." (BBBY reports 3Q financial results on Dec. 21 after the close)

For an analyst ratings summary and ratings history on Bed Bath and Beyond click here. For more ratings news on Bed Bath and Beyond click here.

Shares of Bed Bath and Beyond closed at $61.13 yesterday.

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