Defending Bed Bath & Beyond

I’m not the only one who still likes Bed Bath & Beyond (BBBY). Here are some other views:

SunTrust Robinson Humphrey analyst David Magee stood by his “Buy” rating and said the company will be one of the first to gain when the housing market shows signs of a bottom.
Magee also said the lowered expectations, while disappointing, are not that bad and its balance sheet remains strong. Magee also expects the company will use its $1 billion share repurchase program to enhance shareholder value.
“We had actually expected the market reaction to the news might be worse, and while we do believe there could be some additional near-term volatility, (we) don’t anticipate significant further declines in the multiple,” Magee wrote in a client note.
Meanwhile, CIBC World Markets Corp. Vivian Ma said a decline in the share price presents a buying opportunity. She remained bullish on the company’s long-term value.
“We think the sales environment could remain very competitive in the second quarter, but Bed Bath & Beyond may see some rebound sequentially,” Ma wrote in a client note. “Bed Bath & Beyond has been a consistent outperformer in other periods of consumer pullback.”

Posted by on June 8th, 2007 at 10:58 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.