Close

UPDATE: Bed Bath & Beyond (BBBY) Stock Less Likely to 'Catch A Bid' in Current Environment, Says Oppenheimer; Shares Downgraded to 'Perform'

February 12, 2016 7:08 AM EST
Get Alerts BBBY Hot Sheet
Price: $0.08 --0%

Rating Summary:
    4 Buy, 17 Hold, 14 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
Join SI Premium – FREE

(Updated - February 12, 2016 9:27 AM EST)

Oppenheimer downgraded Bed Bath & Beyond (NASDAQ: BBBY) from Outperform to Perform and removed its price target (prior $85.00). Given the challenging environment for spending, analyst Brian Nagel thinks investors should look towards the second half of the year and focus upon the best-positioned names within the sector.

"For a long while, we have highlighted BBBY as, historically, one of the best-run, and most dominant chains in Hardlines Retail. We continue to look very favorably upon the underlying operating prowess of BBBY. Over the past few years, BBBY has undertaken a significant effort to transform its traditional business model to an omni-channel format so as to compete better with increasingly aggressive ecommerce only competitors. We remain optimistic that the BBBY transformation will ultimately prove successful. The investments that BBBY is making are, however, long-term in nature, and we do not foresee clear evidence of returns on these investments within the time horizons of most investors," said Nagel.

"In an environment characterized by risks to the downside for consumer spending and with Market sentiment towards BBBY already decidedly downbeat, we view it as even less likely that shares are apt to 'catch a bid.' A depressed valuation and continued strong cash flow prospects should provide considerable downside support to BBBY shares," added 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 $42.19 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS View, Downgrades, Retail Sales