Bed Bath & Beyond (BBBY) Q4 Could Beat Estimates but Long-Term Trouble Remains

April 1, 2013 11:46 AM EDT
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Price: $40.68 -0.51%

Rating Summary:
    6 Buy, 21 Hold, 6 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Goldman Sachs today maintained a Sell rating on Bed Bath & Beyond (NASDAQ: BBBY) and adjusted its price target to $59.00 (from $56.00). Analyst Matthew J. Fassler said he was concerned about the company’'s prospects heading into Q4 results on April 10th.

"We continue to believe that the company is among the most challenged in our sector by online incursions, given a commodity-focused mix,'s Inc. (Nasdaq: AMZN) price edge, lofty margins at core BBBY stores, and the challenge of replicating an impulse-item oriented strategy online," said Fassler.

Bed Bath & Beyond is already a low multiple stock and shares moved higher over the past 30 days.

"This quarter is tricky, as we do see upside to Street forecasts, which we believe reflect the accretive impact of Cost Plus, which we suspect the Street is mismodeling (i.e. too low) for 4Q. We remain below consensus for F13 and F14 despite standing above the Street for the current quarter, as BBBY struggles to reinvest in price and IT to try to regain share," concluded the analyst.

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

Shares of Bed Bath & Beyond closed at $64.42 yesterday.

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