- Telsey Advisory Group analyst Cristina Fernández lowered the price target on Bed Bath & Beyond Inc (NASDAQ:BBBY) to $6 from $15, implying a 10.45% downside. The analyst maintained an Underperform rating on the shares.
- The analyst is taking a subdued view due to more negative commentary from mass retailers like Big Lots, Inc. (NYSE:BIG), Target Corp (NYSE:TGT), and Walmart Inc (NYSE:WMT) about consumer spending on the home category and the impact of lapping government stimulus checks in 2021.
- Fernández thinks the challenging dynamic will continue through at least the second quarter of 2022 as retailers take more aggressive steps to clear through inventory.
- She also thinks BBBY's legacy supply chain infrastructure limits the ability to move inventory around quickly and efficiently and offset the financial impact during disruption.
- Price Action: BBBY shares are trading lower by 3.73% at $6.45 in premarket on the last check Wednesday.
