UBS Maintains a 'Neutral' on Bed Bath & Beyond (BBBY); Q1 Preview: Keys To CPWM's Integration
Tweet
Share
E-mailGet Alerts BBBY Hot Sheet
Price: $4.35 -2.03%
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
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.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- Freedom Broker Upgrades Serve Robotics (SERV) to Buy
- Travel Food Services (TRAVELFO:IN) PT Raised to INR1,600 at ICICI Securities
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
UBSSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
