UBS Cuts Price Target on Bed Bath & Beyond (BBBY) to $45 Following 2Q Report
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UBS maintained a Neutral rating on Bed Bath & Beyond (NASDAQ: BBBY), and cut the price target to $45.00 (from $47.00), following the company's 2Q earnings report. The company reported an EPS of $1.11, coming in below the consensus estimate of $1.16. The company is still targeting EPS of $4.50 to $5.00 this year.
Analyst Michael Lasser commented, "All in, this quarter didn't really shed much light on the pivotal question of when BBBY's profitability will stabilize. Its -1.2% comp declined at an accelerating rate and was lower than our -0.5% forecast & the consensus of 0.4% Its 2-year stack eroded from 1Q to 2Q, but the multi-year stacks did show some improvement. Bed Bath noted that its store based comp was down low-single digits just like last quarter, but this metric probably got worse because its eComm biz grew 20%+ like in 1Q. Further, the spread between BBBY's comp and the HF category expanded to 425 bps from 400 bps in the prior quarter, meaning that its share losses accelerated. These aren't really signs that its business is starting to level off. We think those indications won't appear any time soon."
Shares of Bed Bath & Beyond closed at $43.11 yesterday.
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