NewsBreak: Bed Bath & Beyond Jumps as Analyst Predicts Turnaround

This post was originally published on this site

https://i-invdn-com.akamaized.net/news/LYNXNPEC0K0E2_M.jpg
© Reuters. © Reuters.

Investing.com – Shares of home goods retailer Bed Bath & Beyond (NASDAQ:) jumped more than 6% Monday after a Bank of America/Merrill Lynch analyst said the company’s new CEO has the tools to lead a successful turnaround.

  • Mark Tritton had been chief merchandising officer at Target (NYSE:) before taking the Bed Bath & Beyond job in October. Analyst Curtis Nagle said he believes Tritton, who helped Target on its own turnaround, is the right man to lead Bed Bath & Beyond to a recovery.
  • The task will be daunting, Nagle wrote in a note. It will include selling non-core or unprofitable businesses, cost-cutting and store rationalization, selling unneeded real estate and, lastly, improving merchandising, sourcing, and in-store and online operations.
  • If the turnaround works, Bed Bath & Beyond could be generating EBITDA of more than $900 million annually by 2021, Nagle said. That would let the company buy back up to $1 billion in shares – about 60% of its current market capitalization.
  • Shares reached as high as $13.46 before settling back to $13.45, up 7.4 %. The shares are up 84% since hitting a 52-week low of $7.31 on August 15. For the year, they’re up nearly 19%.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment