Meme stock Bed Bath & Beyond (NASDAQ:BBBY) is struggling to hold its own amid the dwindling macroeconomic backdrop. After the home furnishing goods retailer posted disappointing second-quarter results, analysts have become even more confident about their bearish outlook on BBBY stock.
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Several analysts have downgraded the stock further and even lowered their price expectations for the next 12 months. Year-to-date, BBBY stock has lost a whopping 64.3%. Moreover, memesters cause wild swings for the stock from time to time with their speculative bets.
Analysts’ Pessimism About BBBY Grows Stronger
Recently, Goldman Sachs analyst Kate McShane stated her conviction that BBBY stock is worth only $2 (63.1% downside potential), and reiterated a Sell rating on the stock.
McShane believes that BBBY is fundamentally weak and will have a difficult time turning around its failing business. Furthermore, she stated that with the advent of the holiday season, BBBY is going to face stiff competition as competitors up their game with higher inventories and better pricing. Both of which are difficult for the cash-strapped retailer. Particularly, a likely intense promotional backdrop could further drag down the retailer’s margins in the second half of the year.
Similarly, following the company’s Q2 print, Jefferies analyst Jonathan Matuszewski slashed the price target on BBBY stock to $7 (29.2% upside potential) from $9, while maintaining a Hold rating.
Ending Thoughts – Is BBBY a Good Buy?
Now may not be a good time to buy BBBY stock. The retailer’s struggles seem to see no end. Investors may want to sit out a couple of quarters to see how successfully Bed Bath & Beyond undertakes the turnaround strategy.
On TipRanks, Bed Bath & Beyond stock has a Moderate Sell rating. This is based on three Holds versus nine Sells. The average Bed Bath & Beyond stock prediction of $4.28 implies 21% downside potential to current levels.
