Nomura Securities Maintains a 'Neutral' on Bed Bath and Beyond (BBBY); Interesting 10K

Nomura Securities maintains a 'Neutral' on Bed Bath and Beyond (NASDAQ: BBBY) price target of $66.00.

Analyst, Aram Rubinson, said, "BBY has cut its ad dollars by 28% since 2008. That came even as sales grew 32%. As a result, BBBY has leveraged advertising by 170bp in three years. According to the filing, rent leveraged 20bp to 4.8% of sales. Rent has leveraged 80bp over the past three years. Rent per foot was flat at $12.90. BBBY also disclosed that its largest supplier now represents 8% of purchases, up from 5% in F10. We can’t imagine that supplier is any other than Green Mountain (Nasdaq: GMCR), maker of Keurig. On the surface, it could have added ~3% to comps if BBBY made GMs of 35% and turned Keurig equal to the average."

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 $67.71 yesterday.

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