UBS Remains Neutral on Bed Bath & Beyond (BBBY) Ahead of 4Q Results

UBS maintained a Neutral rating and $52.00 price target on Bed Bath & Beyond (NASDAQ: BBBY) ahead of the company's 4Q earnings report. BBBY previously noted that its 4Q started with a solid comp, but UBS thinks that BBBY's trends have slowed over the period. UBS is expecting the company to report comps in the middle of 0-2% guidance. BBBY is scheduled to report 4Q results after market close on April 6th.

Analyst Michael Lasser commented, "Bed Bath's P&L has moved in one direction for so long it's hard to see it changing. Eventually, it might. But, we don't think it will be this quarter. BBBY previously noted its 4Q started with a solid comp, but we think its trends slowed over the period. We model a 1% comp, which is the mid-point of its 0-2% guidance (cons. 0.8%). Notably, our forecast implies BBBY underperformed the HF industry (as measured by Census Bureau Retail sales NAICS 442) by ~350 bps during the quarter. We suspect it lost share to emerging players (and some traditional ones). Overall, we think BBBY has its work cut out for it as it tries to re-accelerate its comp growth. We think the market will wait for signs of a sustainable turnaround before it rewards its shares w. higher multiples."

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 $49.51 yesterday.

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