Jefferies Defends Bed Bath & Beyond (BBBY)
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Price: $4.96 +0.40%
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 5
Rating Summary:
4 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 5
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Analyst at Jefferies admit that Bed Bath & Beyond's (NASDAQ: BBBY) Q3 print wasn't perfect, but in their view downside is limited.
"Bears may point to top-line softness in 3Q and question the quality of earnings given a low tax rate. However, we believe underlying sales trends remain steady at around 4.5%-5% and would note that Sandy probably hurt EPS as much as the tax rate helped," said analyst John Marrin.
While gross margin was slightly lower than modeled, so were SG&A dollars, noted the analyst. In his view, earnings were solid, and guidance looked good. Additionally, Bed Bath & Beyond announced a $2.5 billion buyback.
"We believe these shares are set up well to outperform in the year ahead," concluded Marin.
BBBY shares traded lower by 9.5 percent early on Thursday.
Jefferies has a Buy rating on Bed Bath & Beyond (NASDAQ: BBBY) with a price target of $72.00.
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 $60.28 yesterday.
"Bears may point to top-line softness in 3Q and question the quality of earnings given a low tax rate. However, we believe underlying sales trends remain steady at around 4.5%-5% and would note that Sandy probably hurt EPS as much as the tax rate helped," said analyst John Marrin.
While gross margin was slightly lower than modeled, so were SG&A dollars, noted the analyst. In his view, earnings were solid, and guidance looked good. Additionally, Bed Bath & Beyond announced a $2.5 billion buyback.
"We believe these shares are set up well to outperform in the year ahead," concluded Marin.
BBBY shares traded lower by 9.5 percent early on Thursday.
Jefferies has a Buy rating on Bed Bath & Beyond (NASDAQ: BBBY) with a price target of $72.00.
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 $60.28 yesterday.
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