This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXMPED040SO_M.jpg
Investing.com — Bed Bath & Beyond Inc (NASDAQ:BBBY) jumped 9% after agreeing to sell its Christmas Tree Shops (just in time), Linen Holdings and a distribution center in New Jersey for about $250 million. Additional non-core assets may also end up being sold.
After the announcement, Merrill Lynch and Raymond James both reaffirmed their buy ratings on the 49-year-old retailer. Bank of America (NYSE:BAC) also maintained its buy on the company and raised its price target to $31 from $27, according to StreetInsider.
The stock is up more than 500% since April, currently trading around $23.30. Earlier this month, Bed Bath & Beyond announced quarterly earnings per share of 50 cents, compared to the expected 32-cent loss. It also said same-store sales rose for the first time in almost four years, and online sales surged 80%.
The announcement is part of the company’s plan “to simplify our portfolio, unlock capital and create clear strategic focus to accelerate our plans to build our authority in the Home, Baby, Beauty and Wellness markets,” Chief Executive Officer Mark Tritton.
Bed Bath & Beyond’s sale of Christmas Tree Shops to Handil Holdings includes all 80 brick-and-mortar locations and a Middleborough, Mass., distribution center. The transaction is expected to close next month.
The Linen Holdings business will be bought by The Linen Group, an affiliate of Lion Equity Partners, and merged with Riegel Linen. Linen Holdings provides a linen, terry, amenities, case goods and apparel to businesses in the hospitality and healthcare industries. The sale should close this month.
