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January 8, 2007
Barron's Gives Thumbs Up to Bed Bath & Beyond
I'm not alone:
A conservative company forecast, inexpensive valuation and its potential as a leveraged buyout target could have shares of home goods retailer Bed Bath & Beyond (BBBY) poised for significant climb, according to a report in Barron's.
Fans of the retailer argue that its shares are attractive, "and could rise into the high 40s if Bed Bath & Beyond tops what many deem to be conservative financial guidance for the coming fiscal year," the report in the Jan. 8 edition of the financial newspaper said.
Shares of Bed Bath & Beyond closed at $38.40 on Nasdaq on Friday.
The paper pointed out that Bed Bath shares were trading for a relatively inexpensive price-to-earnings ratio of 16 times estimated earnings of $2.40 a share for the fiscal year ending in February 2008, diminishing the stock's risk.
In addition, a weaker housing market has not cut into Bed Bath sales as some on Wall Street feared, Barron's noted.
Double-digit annual profit growth looks doable, the paper said, adding that Bed Bath & Beyond could reward patient investors.
Posted by edelfenbein at January 8, 2007 7:39 AM
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