Bed Bath & Beyond (BBBY): Beyond+ Looks Appealing But Too Early To Expect Results - Wedbush
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan Raises Rating on CBOE Holdings (CBOE) to 'Overweight'; Analyst Thinks Bats Technology Will Drive Greater Trading Activity
- Jefferies Cuts Price Target on Eros Int'l (EROS) to $18 Following Multi-Year Deal
- Jefferies Cuts Price Target on Workday (WDAY) to $71 Following 3Q
Create E-mail Alert Related CategoriesAnalyst Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!