(Updated to include Wedbush commentary)
Wedbush raised its price target on Bed Bath & Beyond (BBBY) to $10 from $8, noting that the company is in a misunderstood special situation going through a strategic transformation.
Under Chairman and Chief Executive Marcus Lemonis, Bed Bath & Beyond is building a multi-pillar "Everything Home" platform across omnichannel retail, home services, and residential real estate, analysts Michael Piccolo and Ygal Arounian wrote in a Tuesday note.
The market continues to price the company as a declining e-commerce operator, ignoring a credible path to an annualized revenue run rate of around $3 billion, along with meaningful cross-pillar synergies, gross margin expansion, and multi-year operating leverage, the analysts mentioned.
While being cautious that execution risk is real and should not be minimized, the brokerage mentioned that the stock is trading at a significant discount to intrinsic value and sees upside potential.
Bed Bath & Beyond has an average rating of overweight and mean price target of $10.33, according to analysts polled by FactSet.
(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)
Price: $6.44, Change: $+0.61, Percent Change: +10.46%