Bed Bath & Beyond Inc. shares 14% premarket Wednesday, as analysts weighed in on earnings released last Tuesday that fell well short of expectations. SunTrust Robinson Humphrey analysts noted that other home retailers are not performing as weakly, and reiterated their argument from earlier this year that the company needs strength in everyday product value, as well as customer messaging. “Neither appear to be in the cards in the near term for BBBY which, in our opinion, relies too heavily on the archaic practice of heavy couponing for both,” analysts wrote in a note. SunTrust reiterated its hold rating on the stock and its estimates and stock price target are under review. KeyBanc analysts reiterated their underweight rating on the stock and cut their price target to $21, or 22% below its current level. “We remain supportive of mgmt’s investments in the business, and remain hopeful that they start to benefit the top line,” they wrote. “However, in the NT, margins remain under significant pressure and further deteriorated in the quarter.” Shares have fallen 33% in 2017 through Tuesday, while the S&P 500 has gained 12%.
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