KeyBanc upgrades Bed Bath & Beyond on 'sizable upside opportunity'
KeyBanc analyst Bradley Thomas last night upgraded Bed Bath & Beyond to Overweight from Sector Weight with an $18 price target. The retailer closed Monday down 68c, of 5%, to $12.30. The analyst's proprietary data suggests the company's same-store sales trends have been improving. Further, he believes new CEO Mark Tritton and his merchandising background should be a "strong fit" for Bed Bath's needs. In addition, asset sales or divestitures "could happen sooner rather than later" and could be material, while the stock's valuation points to a "sizable upside opportunity" with "relatively bearish sentiment baked in," contends Thomas. The analyst sees "several key reasons" to own shares of Bed Bath & Beyond.