Jefferies Positive on Bed Bath and Beyond's (BBBY) Linen Deal Despite Questions

Jefferies said while the investment community will question Bed Bath and Beyond's (NASDAQ: BBBY) acqusition of Linen Holdings, they are positive on the move.

The firm comments, "The investment community will likely question the wisdom of the $105mn investment in Linen Holdings in lieu of additional share repurchases. But, in our view, the long-term opportunities appear meaningful enough to justify the relatively small outlay. We suspect the key asset here is the sourcing expertise that could support an accelerated effort on the private-label front."

Jefferies maintained their Buy rating and price target of $78.00 on BBBY.

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 $70.78 yesterday.

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