Bed Bath & Beyond (NASDAQ:BBBY) stock is taking a beating on Monday after Goldman Sachs analyst Kate McShane claimed it’s only worth $2.
Why such a negative stance on BBBY stock? The Goldman Sachs analyst believes Bed Bath & Beyond is going to have a hard time bringing back customers in the second half of the year. She attributes this to increased competition from market rivals.
The update from McShane includes new adjusted EBITDA estimates. The firm now expects adjusted EBITDA to come in at a loss of $470 million, as compared to its prior estimate of a loss of $326 million. It also lowered estimates for adjusted EBITDA in fiscal 2023 and 2024 to a loss of $28 million and a positive $64 million, respectively.
Analysts Are Bearish on BBBY Stock
For the record, this is a reiteration of McShane’s price target for BBBY stock. It also comes alongside a reiterated “sell” rating for the shares. The analysts consensus for BBBY is $5.13 with a “sell” rating.
Investors will also note shares of BBBY stock were trading for $6.09 each when markets closed on Friday. That has the $2 price prediction representing a roughly 67% downside compared to its prior close price. The analysts consensus price target expects about a 16% drop for the shares.
The home goods company has been struggling throughout the year as it tries to draw customers back in. It achieved meme stock status for a while earlier this year, but that time seems to have passed.
BBBY stock is down 1.4% as of Monday morning and is down 60.5% since the start of the year.
Investors seeking out more recent market news will want to keep reading!
InvestorPlace has all of the latest stock market news traders need to know about for Monday! That includes what’s happening with LiveWire Group (NYSE:LVWR), this morning’s biggest pre-market stock movers and more. You can find all of this news at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
