Wedbush is bullish on Bed Bath & Beyond – here’s why
Fast facts
- Wedbush on Sept. 21 reissued an “outperform” rating on Bed Bath & Beyond Inc. with a $13 price target
- The financial services firms has forecast Q3 revenue of $268M, ahead of Wall Street estimates
- Bed Bath & Beyond is expanding its new Home store concept via Kirkland store conversions and franchise opportunities
- The company is also pursuing growth through its buybuybaby, Overstock, and blockchain assets
New York – Financial services firm Wedbush likes the direction Bed Bath & Beyond Inc. is headed and is betting it has momentum.
This week, the firm reissued on “outperform” rating on the company’s stock – setting a $13.00 price objective. That marked a potential upside of 53.48% at the time of the stock’s previous close, according to Marketbeat.
The retail company, which changed its corporate identity from Beyond Inc. in late August, is scheduled to announce its Q3 results on Monday, Oct. 27 after the stock market close. Wedbush is forecasting Q3 revenue at $268 million, which would represent an 8% decline from $311 million in last year’s Q3. Still, Marketbeat noted, Wedbush’s estimate tops others on Wall Street.
Wedbush expects to see improvement in Bed Bath’s online sales trends. In addition, “[a]nalysts also expect gross margins to climb with Overstock.com’s expansion and note this company faces fewer tariff headwinds than rivals. Plus, Bed Bath & Beyond plans to squeeze more value from its tZero and Medici assets,” investor news service finimize reported.
In July, the retailer announced it was pivoting away from a focus on cost-cutting to pursue a growth strategy. Since then, things have moved quickly.
In August, it unveiled the new Bed Bath & Beyond Home store concept in Nashville – the first of what will be roughly 250 conversions of Kirkland’s store boxes. In September, Bed Bath completed the $10 billion acquisition of Kirklands’ assets. In October, the company announced it would open to concept for franchising – the goal being to accelerate brick & mortar growth without taking on huge capital investments.
Bed Bath & Beyond Inc. also plans to open physical retail locations for its buybuybaby.com and overstock.com brands and is working to leverage its blockchain asset portfolio.
“Our focus is clear: to deliver a seamless shopping experience that combines the strength of our online platforms with the excitement of new store openings nationwide over the next 24 months,” said Marcus Lemonis, executive chairman and principal executive officer, as he rang the opening bell at the New York Stock Exchange on Sept. 2.
