Bed Bath & Beyond is getting crushed
Analysts downgrade the stock after the company misses earnings and cuts full-year guidance.
Gary Balter at Credit Suisse downgraded the stock to "neutral" from "outperform" and lowered his price target to $78 from $85.
Balter thinks the retailer is well-positioned but argues that "square footage growth is low at less than 2%, implying that growth needs to come from comps and margins.
"Yet putting aside a better second quarter, the company has struggled to put those two variables together. We assume that comps next year will be in the low- to mid-single-digit range, but gross margins will continue to decline, although at a lower rate. At this time last year that may have been fine given the attractive valuation, but BBBY's strong performance in 2013 implies limited upside for this well-managed chain."
Analysts at Canaccord Genuity lowered their price target to $73 from $84. And Oppenheimer lowered its price target to $86, according to 24/7 Wall Street.
The stock is said to have hit its short-sale circuit breaker. This is the point at which there is a ban on short-selling after a stock has dropped a certain amount.
More from Business Insider
Republicans reduce employee wages!
Republicans outsource jobs!
Republicans eliminate pensions and benefits!
Republicans want to eliminate Social Security, Medicare, Medicaid and Snap!
Republicans want to end Unemployment benefits, thus forcing more people on Welfare, which they want to eliminate!
Republicans want to destroy Unions and enforce "Right to Fire" states.
Republicans want Corporate Fascism and an Oligarchy to rule the land!
Republicans worship money and obscene profits above all else!
Republicans want your vote to make all these things a reality!
Is it any wonder why Republicans are losing and becoming extinct?
Mainstream Americans will not allow Republicans to destroy America!
God bless America!
Could we get your vote please and in return, we promise to take good care of you. In fact, when we are done with you, you will never suffer from pain or worries ever again. WE HAVE A PLAN!
We are also setting up thousands of food trucks from coast to coast, to help feed you and your families through these tough economic times.
So, all you beautiful poor people,.... "Come and get your gruel, we aren't at all that cruel".
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.