UBS Maintains a 'Neutral' on Bed Bath & Beyond (BBBY); Q1 Preview: Keys To CPWM's Integration
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Price: $68.00 +0.97%
Rating Summary:
10 Buy, 9 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 24 | New: 24
Rating Summary:
10 Buy, 9 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 24 | New: 24
Trade BBBY Now!
UBS maintains a 'Neutral' on Bed Bath & Beyond (NASDAQ: BBBY) price target of $73.00 (from $71.00).
Analyst, Michael Lasser, said, "We think our $0.85 1Q’12 EPS estimate (vs. consensus at $0.84) is conservative. Most data points indicate that trends in the sector remained strong from 4Q’11 to 1Q’12 (i.e., Census Bureau retail sales for HF were +7.5% in 1Q and +10.3% in 4Q). Similarly, BBBY’s website traffic increased 10% during 1Q (vs. 8% in 4Q). We expect to see some gross margin pressure. Anything more than a 40-50 bps decline would probably put some strain on the stock in the near-term."
"Key to CPWM deal will be synergies and cross pollinating the concept: Assuming that BBBY can roll out CPWM store-within-a-store food sections in 50% of its BBB
stores, it would add $539 mm in sales, $0.5 mm in EBIT, and would be EPS neutral."
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 $72.67 yesterday, with a 52 week range of $48.75-$74.67.
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Analyst, Michael Lasser, said, "We think our $0.85 1Q’12 EPS estimate (vs. consensus at $0.84) is conservative. Most data points indicate that trends in the sector remained strong from 4Q’11 to 1Q’12 (i.e., Census Bureau retail sales for HF were +7.5% in 1Q and +10.3% in 4Q). Similarly, BBBY’s website traffic increased 10% during 1Q (vs. 8% in 4Q). We expect to see some gross margin pressure. Anything more than a 40-50 bps decline would probably put some strain on the stock in the near-term."
"Key to CPWM deal will be synergies and cross pollinating the concept: Assuming that BBBY can roll out CPWM store-within-a-store food sections in 50% of its BBB
stores, it would add $539 mm in sales, $0.5 mm in EBIT, and would be EPS neutral."
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 $72.67 yesterday, with a 52 week range of $48.75-$74.67.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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