Bed Bath & Beyond is getting crushed

Analysts downgrade the stock after the company misses earnings and cuts full-year guidance.

By MSN Money Partner Jan 9, 2014 2:12PM
A customer enters a Bed Bath & Beyond store in Mountain View, Calif. on May 9, 2012 (© Paul Sakuma/AP Photo)By Mamta Badkar, Business Insider

Bed Bath & Beyond (BBBY) was down nearly 13 percent to $69.52 Thursday after the company missed earnings and cut full-year guidance Wednesday.

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
Tags: BBBY
Jan 11, 2014 1:55AM
Republicans reduce their workforce!
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!
Jan 9, 2014 4:50PM
Much like Best Buy was, they have become a victim of show rooming for Amazon.  The difference is they have not really found a way to fight against it.
Jan 10, 2014 2:07PM
Since it's an election year, we Repukelicans all of sudden, care about the poor.

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".
Jan 9, 2014 6:20PM
Until we get Amazon's customers paying taxes and the zero-margin selling it does, compromises so many jobs that ALL retail is crippled by it, we just endure. Hey kids... when the only reference you have is a mocked-up photo-shopped facsimile of the real thing... and that's NOT what comes in the box... will you learn. Too bad you will have killed any alternative by then. Amazon-- BAD. Sustaining your own hometown and the businesses who help keep it sustaining in many ways-- GOOD. Text pecking your life away-- BAD. Looking up and seeing the world you are letting slip through your fingers-- OVERDUE. 
Jan 9, 2014 6:26PM
Their soaps and creams gives me hives. they need to develop more hypoallergenic items.
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


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.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123 rated 1
262 rated 2
480 rated 3
651 rated 4
649 rated 5
629 rated 6
616 rated 7
496 rated 8
346 rated 9
111 rated 10

Top Picks

TAT&T Inc9



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.