HomeFinancial MarketsGoldman Sachs Puts $2 Price Tag on Bed Bath & Beyond Stock

Goldman Sachs Puts $2 Price Tag on Bed Bath & Beyond Stock

Bed Bath & Beyond stock (BBBY) has been in free fall in recent months due to the company’s struggles and poor results in 2022. The BBBY is currently at $6.09 per share, around 60% down year-to-date, but experts say even this is too high of a price.

In a recent report, Goldman Sachs analyst Kate McShane reiterated her “Sell” rating on Bed Bath & Beyond and deemed the stock overvalued. She gave a $2 per share price target on BBBY, saying that the company is facing an uphill battle to turn things around.

“Although we think Bed Bath & Beyond sounded more constructive with regards to the opportunity in bringing back more national brands gradually, we continue to believe Bed Bath & Beyond will have a hard time driving customers to its store, especially in the second half, given the amount of competition we expect in the home goods industry,” McShane explains.

Releasing its earnings report last week, Bed Bath & Beyond revealed that comparable store sales are down 26% compared to last year while recording a $168 million operating loss in the past quarter. Its numbers also missed the Wall Street estimates by a wide margin.

The company recorded a $3.22 adjusted loss per share, while analysts expected a $1.85 adjusted loss per share. Also, revenue came at $1.44 billion compared to the $1.47 billion expected.

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