Nomura Securities Maintains a 'Neutral' on Bed Bath and Beyond (BBBY); Trimming Estimates on More �Moving Parts� than Normal in 2012
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Price: $4.35 --0%
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Nomura Securities maintains a 'Neutral' on Bed Bath and Beyond (NASDAQ: BBBY) price target of $63.00.
Nomura analyst, Aram Rubinson, said, "BBBY has consistently underpromised and overachieved. That is true of both customer expectations and Wall Street expectations. We expect FQ3 results (due out Dec 21) to see more of the same...Even though BBBY seemed to buy for a modest FQ3 comp (+2%), we would not be surprised to see it beat our +3.5% comp estimate. Pier 1 (NYSE: PIR) reported +7%, and Williams Sonoma (NYSE: WSM) reported +6%. The Street is expecting ~4%."
"While FQ3 may seem typical, we believe that 2012 may not be so typical. After recovering prior peak EBIT margins on the back of strong margins and declining SG&A per foot in F2011, BBBY may see some margin give-back in F2012...We are trimming our 2012 EPS estimate by $0.05. At $4.20 (vs. the Street at $4.37), our forecast may be overly cautious. However, we think some degree of caution is warranted, given a plethora of moving parts."
Rubinson also cuts FY13 EPS estimate from $4.95 to $4.77.
For an analyst ratings summary and ratings history on Bed Bath and Beyond click here. For more ratings news on Bed Bath and Beyond click here.
Shares of Bed Bath and Beyond closed at $60.66 yesterday.
Nomura analyst, Aram Rubinson, said, "BBBY has consistently underpromised and overachieved. That is true of both customer expectations and Wall Street expectations. We expect FQ3 results (due out Dec 21) to see more of the same...Even though BBBY seemed to buy for a modest FQ3 comp (+2%), we would not be surprised to see it beat our +3.5% comp estimate. Pier 1 (NYSE: PIR) reported +7%, and Williams Sonoma (NYSE: WSM) reported +6%. The Street is expecting ~4%."
"While FQ3 may seem typical, we believe that 2012 may not be so typical. After recovering prior peak EBIT margins on the back of strong margins and declining SG&A per foot in F2011, BBBY may see some margin give-back in F2012...We are trimming our 2012 EPS estimate by $0.05. At $4.20 (vs. the Street at $4.37), our forecast may be overly cautious. However, we think some degree of caution is warranted, given a plethora of moving parts."
Rubinson also cuts FY13 EPS estimate from $4.95 to $4.77.
For an analyst ratings summary and ratings history on Bed Bath and Beyond click here. For more ratings news on Bed Bath and Beyond click here.
Shares of Bed Bath and Beyond closed at $60.66 yesterday.
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