Look to Bed Bath & Beyond as a one-stop-shop for all your household essentials and home goods. “Despite another activity campaign (calling for a streamlined turnaround and strategic alternatives), we view Bed Bath & Beyond as a structurally challenged asset, visibility remains low and the path ahead likely remains bumpy,” Wells Fargo said.Whether you’re looking to equip your house with the basics like bedding and cookware or looking to give your space a stylish update with home décor, the Bed Bath & Beyond® store in Broad Street has everything you want and everything you didn’t know your home needed. Wells Fargo halved its price target to $10 from $20 and maintained its underweight stock rating after the earnings. KeyBanc has a $10 price target on Bed Bath & Beyond shares. “While the sale of Baby could support the stock in the short term, we ultimately believe fundamentals point to a lower share price, which remains the basis of our underweight rating,” analysts said in a note. KeyBanc Capital Markets used the earnings information to estimate the value of the business at $1.0 billion to $1.5 billion, though analysts say they would need more detail. One expert says it’s a signal of optimism See: Kohl’s, Guess and other consumer companies are facing off with activist investors. A March letter from Ryan Cohen and RC Ventures had valued the business at “multiple billions,” which analysts quickly disputed. Shares have rallied 18.8% for the year to date, but have slumped 29.4% over the last 12 months.Ī bright spot in the print was the buybuy Baby business, which has reached $1.4 billion in sales for the year. UBS rates Bed Bath & Beyond stock sell with a $12 price target, down $1.īed Bath & Beyond swung to a loss in the fourth quarter the FactSet consensus was for a profit of 3 cents per share. Plus, to attract new customers, it not only needs the right merchandise but also to meaningfully invest in marketing to increase its share of voice among millennials.” We think it needs to build out a modern supply chain system with state of the art distribution center networks. “Importantly, to resolve these issues, we believe Bed Bath & Beyond will need to significantly accelerate investments in its business. “We believe its core baby boomer customers are past their prime spending years and millennials seem less inclined to shop at Bed Bath & Beyond,” analysts wrote in a note. UBS said the retailer has lost older customers, and needs to transform in order to appeal to younger shoppers. Read: Bed Bath & Beyond says Q4 revealed unforeseen weaknesses and the strength of its baby-focused chain “I think what we’re seeing is a stabilization of that base and we’re really now investing in 2022 in those customers both current and future we’re recovering out of that and we have plans to fortify that 35 million and make them stickier and build more new customers across multi-generations.” I think second to that is we had store closures,” Tritton said on the call, according to a FactSet transcript. “I think during the COVID moment, we definitely saw in 20 a one-time customer that was searching digitally and that’s affected our customer count in the short term.
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