- Goldman Sachs is taking their rating on Bed Bath & Beyond (NASDAQ:BBBY) to Neutral from Buy noting that while the co has historically been able to buck the trend, the convergence of a tough housing sector, aggressive competition, and rising oil prices has proven tough to overcome.While they continue to view Bed Bath and Beyond as a best in class home retailer, it is not immune to a challenging home backdrop. Management's commitment to the long-term health of the business is enabling it to post still positive comps as others flounder; however, EPS growth is slowing, and as a result, the firm sees no catalyst on the horizon.
GSCO has lowered their F07 and F08 EPS estimates to $2.35 and $2.65 from $2.44 and $2.82; as a result, price target moves down to $40 from $45, which equates to 15X F08 EPS estimates.
Notablecalls: This is exactly the type of stuff that will (at least initially) push the stock toward the lower end of my suggested range.
GSCO has lowered their F07 and F08 EPS estimates to $2.35 and $2.65 from $2.44 and $2.82; as a result, price target moves down to $40 from $45, which equates to 15X F08 EPS estimates.
Notablecalls: This is exactly the type of stuff that will (at least initially) push the stock toward the lower end of my suggested range.
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