BTIG Remains Cautious on Bed Bath & Beyond (BBBY) Following Q1 Results; Affirms at 'Neutral'

BTIG maintains a Neutral rating on Bed Bath & Beyond (NASDAQ: BBBY) following Q1 results issued Wednesday night.

Analyst Alan Rifkin commented, We expect BBBY shares to be weak today after reporting 1Q revenues, comps and EPS that were below our expectations. Full year comp sales guidance was lowered and BBBY also backed away from the high end of its EPS guidance range. Despite a seemingly low valuation, we remain cautious on BBBY shares as we await signs of margin stabilization. With EBIT margin down 220 bp in 1Q, and no timetable for when stabilization might occur, we continue to rate shares Neutral.

Rifkin noted, Despite >20% digital growth, total comp sales were down due to a low single-digit comp decline in retail. Retail had managed a flat comp in 4Q15. As we estimate retail is 89% of revenues, a turnaround there is imperative for overall comp growth.

For an analyst ratings summary and ratings history on Bed Bath & Beyond click here. For more ratings news on Bed Bath & Beyond click here.

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