UPDATE: Loop Capital Downgrades Bed Bath & Beyond (BBBY) to Sell

November 3, 2021 5:03 AM EDT
Get Alerts BBBY Hot Sheet
Price: $4.97 --0%

Rating Summary:
    6 Buy, 20 Hold, 9 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 3 | Down: 10 | New: 8
Join SI Premium – FREE
(Updated - November 3, 2021 7:09 AM EDT)

Loop Capital analyst Anthony Chukumba downgraded Bed Bath & Beyond (NASDAQ: BBBY) from Hold to Sell, PT $14.00.

The analyst comments "We are downgrading Bed Bath & Beyond (BBBY) to a Sell from a Hold rating following the over 70% jump in the company’s stock price in pre-market trading (which followed a 9.6% rise yesterday, well ahead of the 0.4% increase in the S&P 500) based on the announcements the company entered a strategic collaboration with grocery retailer Kroger, will set up a digital marketplace, and is accelerating share repurchases. None of these developments materially alter our view BBBY has lost market share, mind share, and consumer relevance—which we believe is further confirmed by the continuation of the company’s weak early F3Q 2021 sales trends last month. In addition, we question how many consumers are going to purchase toasters, flatware, or Roombas from a supermarket’s website or stores—and think the fact BBBY feels the need to expand its distribution channels further evidences the company’s deteriorating importance in the home goods retailing supply chain. Our $14 price target implies over 50% downside risk from pre-market levels."

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 $16.75 yesterday.

You May Also Be Interested In

Related Categories

Analyst Comments, Downgrades

Related Entities

Standard & Poor's