Bed Bath & Beyond Inc. (NASDAQ:BBBY) stock took a tumble today following a downgrade from a JPMorgan analyst.
JPMorgan analyst Christopher Horvers downgraded BBBY stock to an “Underweight” rating on Friday. Prior to this, Horvers had given the stock a “Neutral” rating. He also cut the price target for the stock down to $18. The previous price target for Bed Bath & Beyond Inc.’s stock was $21. Horvers price target for BBY stock is well below the current consensus, which is sitting at $23.
Horvers gives a few reasons as to why the downgrade was necessary for BBBY stock. This includes concerns about the company’s same-store sales from the previous quarter. Same-store sales were only up 0.3% during this period, despite the quarter being a strong season for retailers.
The JPMorgan analyst also has his concerns about how well the company is performing in the current quarter. Other analysts have been more positive about the quarter, but Horvers says trends are already starting to slow down, reports Benchmark Monitor.
Bed Bath & Beyond Inc. is set to announced its earnings for its fiscal full year of 2017 in April. Wall Street is looking for the company to report earnings per share of $3.02 on revenue of $12.29 billion.
Bed Bath & Beyond Inc. has also recently been dealing with a recall for some of its bedding. This recall is for UGG comforters being sold at its stores. 175,000 units were recalled due to the risk of mold.
BBBY stock was down 4% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
