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Analysts Favor ‘Holds’ on Bed Bath & Beyond ahead of Q4 Results

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Apr. 5 2019, Published 5:39 p.m. ET

Analysts’ recommendations

Of the 22 analysts that follow Bed Bath & Beyond (BBBY) stock, 9.1% have given it “buy” ratings, while 72.7% have given it “holds,” and 18.2% have given it “sells.” Analysts’ 12-month price target for the stock stands at $16.27, which represents a potential fall of 7.5% from its current price of $17.59.

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Since the beginning of March 2019, Barclays, Raymond James, KeyBanc, and Morgan Stanley have upgraded BBBY. On April 5, Morgan Stanley upgraded the stock from an “underweight” to an “equal weight” and raised its price target from $13 to $20. Earlier, Raymond James had upgraded the stock from a “market perform” to a “strong buy,” and Barclays had upgraded it from an “underweight” to an “equal weight.” Telsey Advisory Group and Jefferies also raised their price targets on the stock.

Peer comparison

Of the 24 analysts that cover Williams-Sonoma (WSM) stock, 4.2% have given it “buy” ratings, while 75% have given it “holds,” and the remaining 20.8% have given it “sells.” Analysts’ average 12-month price target for the stock stands at $56.13, which implies a potential fall of 5.5% from its current price of $59.36.

Of the 22 analysts that cover RH (RH) stock, 36.4% have given it “buy” ratings, while 59.1% have given it “holds,” and 4.5% have given it “sells.” Analysts’ average 12-month price target for the stock stands at $137.31, which implies a potential upside of 30.3% from its current price of $105.35.

Valuation multiple

The increase in Bed Bath & Beyond’s stock price since its announcement of its third-quarter earnings results on January 9 has also raised the company’s valuation.

As of April 4, BBBY was trading at a forward PE multiple of 9.8x compared to 7.5x before its announcement of its earnings results. On the same day, Williams-Sonoma and RH were trading at forward PE multiples of 12.8x and 12.2x, respectively.

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