Bed Bath & Beyond downgraded to sell from hold by Loop Capital on ‘unrealistic’ guidance
Bed Bath & Beyond Inc. stock BBBY, +0.13% was downgraded to sell from hold by Loop Capital on Monday with analysts saying its recent rise is unwarranted as guidance provided for fiscal 2019 is "unrealistic". Analyst Anthony Chukumba said management’s poor record of meeting consensus combined with headwinds affecting sales growth and profitability make it unlikely the stock will meet its targets. "In addition, we think BBBY shareholders are unlikely to be "bailed out" by a leveraged buyout (LBO) or activist investment," the analyst wrote in a note. He cut his price target to $12 from $13. Bed Bath & Beyond stock has gained 26% since the guidance was first offered, far outpacing the broader market indices. The stock was flat Monday, but has gained 36% in the last 12 months, while the S&P 500 SPX, +0.14% has gained 3.5%.
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