Bed Bath & Beyond: Too Much Going On (Rating Downgrade)

Bed Bath & Beyond, Inc. reported mixed Q2 results. Sales seemed to stabilize organically, but the inclusion of TBHC's financials weakened profitability. BBBY is expanding very aggressively and quickly through a number of acquisitions. The earnings impact of the strategy seems messy. I estimate BBBY stock to have a -20% base scenario downside to $4.0 based on current businesses. Recent acquisitions cloud the valuation.

Bed Bath & Beyond, Inc. ( BBBY ) reported the company’s Q2 results on the 4 th of August. The furnishing retailer, increasingly expanding into home services through acquisitions, reported very mixed financials after the