Bed Bath & Beyond (BBBY): Beyond+ Looks Appealing But Too Early To Expect Results - Wedbush
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Wedbush analyst, Seth Basham, reiterated his Neutral rating on shares of Bed Bath & Beyond (NASDAQ: BBBY) after the company launched a beta test of “Beyond+”, offering a limited number of customers an “all access pass” to 20% off every Bed Bath purchase (not just a single item) online and in store plus free standard shipping for an annual fee of $29.
Initially aimed at more loyal customers, the analyst sees this as a potentially compelling offer in an increasingly competitive online landscape. Most importantly, Bed Bath’s net pricing on products not excluded from the 20% discount will beat Amazon on most comparable products by an average of 13% based on the last price study.
The analyst sees Beyond+ as the company's best effort to stem share losses as category sales continue to shift online to new, disruptive retailers. However, it is too early to tell not only whether the program will draw substantial interest but also if it will provoke enough additional sales to offset the cost of higher discounts and shipping.
No change to the price target of $42.
Shares of Bed Bath & Beyond closed at $43.11 yesterday.
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