UPDATE: Canaccord Genuity Upgrades Bed Bath & Beyond (BBBY) to Buy; Recent Dip Provides Opportunity; Cost Plus Provides Extra Boost
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Price: $68.72 +0.26%
Rating Summary:
10 Buy, 9 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Rating Summary:
10 Buy, 9 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Trade BBBY Now!
(Updated - August 13, 2012 8:30 AM EDT)
Canaccord Genuity upgraded Bed Bath & Beyond (NASDAQ: BBBY) from Hold to Buy with a price target of $75.00 (from $71.00).
Analyst, Laura Champine, said, "BBBY shares have declined 15% since 6/20 when the company issued Q2 EPS guidance that fell short of expectations. Over the same period, the S&P 500 index is up 4%, and the RLX index is flat. The stock currently trades at 13x our NTM EPS estimate (12x excluding cash) and 7x NTM EV/EBITDA, below its historical averages of 16x and 8x, respectively. We view this as an opportunity for investors to buy a high-quality company just as the addition of Cost Plus becomes a potential growth lever. We believe Cost Plus’ contribution to EPS will grow from $0.01 in F2012 to $0.32 by F2016. BBBY still has around $1B in cash following recent acquisitions which will support much-needed investments in technology and the return of capital to shareholders."
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 $62.78 yesterday, with a 52 week range of $50.17-$75.84.
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Canaccord Genuity upgraded Bed Bath & Beyond (NASDAQ: BBBY) from Hold to Buy with a price target of $75.00 (from $71.00).
Analyst, Laura Champine, said, "BBBY shares have declined 15% since 6/20 when the company issued Q2 EPS guidance that fell short of expectations. Over the same period, the S&P 500 index is up 4%, and the RLX index is flat. The stock currently trades at 13x our NTM EPS estimate (12x excluding cash) and 7x NTM EV/EBITDA, below its historical averages of 16x and 8x, respectively. We view this as an opportunity for investors to buy a high-quality company just as the addition of Cost Plus becomes a potential growth lever. We believe Cost Plus’ contribution to EPS will grow from $0.01 in F2012 to $0.32 by F2016. BBBY still has around $1B in cash following recent acquisitions which will support much-needed investments in technology and the return of capital to shareholders."
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 $62.78 yesterday, with a 52 week range of $50.17-$75.84.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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