As previously reported, Raymond James analyst Beryl Bugatch downgraded Bed Bath & Beyond to Underperform from Market Perform following quarterly results. Despite the array of initiatives announced by management, a key issue for the analyst is that the fleet of over 1,000 legacy Bed Bath & Beyond stores continue to deliver in-store mid-single-digit comp sales declines. Without some underlying growth in management generated earnings over the next two years, shareholder value is likely to erode further, he adds. Nonetheless, Bugatch points out that at its current valuation, Bed Bath may attract "activist" interest.