UBS on Bed Bath & Beyond (BBBY): Was Recent Acquisition Motivated By Slowing Core Growth?

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UBS maintains a 'Neutral' on Bed Bath & Beyond (NASDAQ: BBBY) price target of $71.00 (from $73.00).

Analyst, Michael Lasser, thinks the recent acquisition of Cost Plus was indeed because the company is realizing slower growth. And, after a quick review of BBBY's Q1 results, the 3% same-store sale comparison was the smallest since the second quarter of 2009. Also of note, if you remove BBBY's $0.06 EPS tax benefit, the company would have misses the $0.84 consensus estimate. Lastly, Lasser points out the the company's gross margin declined at its steepest rate since '08 and the overall lack of traffic may affect the company/stock longer term. Therefore, Lasser cuts FY14 EPS estimate from $5.04 to $4.94.

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 $73.67 yesterday, with a 52 week range of $48.75-$75.84.

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