Bed Bath & Beyond Misunderstood, Trading at Significant Discount, Wedbush Says

MT Newswires Live06-23

Bed Bath & Beyond (BBBY) is a misunderstood business undergoing a strategic transformation and trading at a significant discount to its intrinsic value, Wedbush Securities said Tuesday in a note to clients.

The market continues to price Bed Bath & Beyond as a declining e-commerce operator, while overlooking its potential to reach a $3 billion annualized revenue run rate, generate meaningful cross-pillar synergies, expand gross margins, and achieve multi-year operating leverage, according to the note.

The company is assembling a multi-pillar "Everything Home" platform across omnichannel retail, home services, and residential real estate, which serves homeowners across the full home lifecycle, the note added.

Bed Bath & Beyond has also invested in a blockchain asset portfolio, anchored by a majority stake in tZERO, a vertically integrated, fully regulated digital securities infrastructure stack, the brokerage said.

Wedbush assumed coverage of Bed Bath & Beyond with an outperform rating and raised the price target to $10 from $8.

Shares of Bed Bath & Beyond rose nearly 10% in Tuesday trading.

Price: 6.44, Change: +0.61, Percent Change: +10.38

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