Analysts Think Bed Bath & Beyond's Bull Run Is Ending, See Possible 39% Downside
January has been a good month for home goods company Bed Bath & Beyond (NASDAQ: BBBY) so far, with single-day upward surges of as much as 10% and an approximate 50% rise since Jan. 1. Despite volatility, the retailer's shares are up between 14% and 16% in early afternoon trading Tuesday.
However, several Wall Street analysts see the writing on the wall when it comes to Bed Bath & Beyond's "January miracle." The Fly reports Michael Lasser, an analyst at UBS, predicts a sharp drop in the company's share value. He says the likely ongoing decline of the COVID-19 pandemic will make consumers switch over to dining out, traveling, and doing other outside-the-home activities, causing demand for housewares to sag in the coming months. Based on this argument, he gives Bed Bath & Beyond a sell rating and predicts a 39% downside with his $20 price target.
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Source Fool.com
