-- Bed Bath & Beyond's (BBBY) Q1 print has more upside risk, supported by a positive trajectory in website data during the quarter and potential market share gains, Wedbush Securities said in a Friday note.
The company is scheduled to report quarterly results Monday after market close.
Wedbush said it expects Q1 revenue of $239 million, but sees upside to its estimate, citing positive web data trends driven by rising unique visitors and page views, which suggest market share gains.
The company's efforts to improve earnings by eliminating unprofitable SKUs and reducing fixed costs should drive flow-through to any topline upside.
The company is positioned to continue its pivot toward becoming a vertically integrated home services platform as it works to integrate recent acquisitions, with expected annualized cost savings and efficiencies of $40 million within 12 to 18 months of full integration, Wedbush added.
The proper execution of the company's ancillary revenue streams could also expand its addressable market into higher-margin recurring software streams, according to the note.
Wedbush reiterated its outperform rating on the stock and price target of $7 per share.
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