Bed Bath & Beyond (BBBY) stock soared on June 23 and continued to move upward on June 24 after Wedbush Securities analysts led by Seth Basham dubbed the retailer a discounted value play.
Basham upgraded BBBY this week to “Outperform” and announced an ambitious $11 price target, indicating potential upside of another 65% from current levels.
Despite recent gains, Bed Bath & Beyond shares remain down more than 10% versus their year-to-date high.
Why Is Wedbush Bullish on Bed Bath & Beyond Stock?
Basham’s bullish view centers on BBBY’s aggressive 2026 transformation under its consolidated e-commerce and retail portfolio.
According to Basham, investors are fundamentally undervaluing the company’s recent strategic moves, including an all-stock merger with Fathom Holdings and the acquisition of F9 Brand assets, like LL Flooring.
These integrations position Bed Bath & Beyond to become a premier end-to-end homeownership and services platform.
At about 0.41x sales, BBBY shares currently reflect a big disconnect from the firm’s actual revenue-generating capabilities and its expanding digital footprint, he added.
Note that options pricing also signals continued upside ahead, with the upper price on contracts expiring mid-September set at $8.86 at the time of writing.
Improving Bottom-Line to Drive BBBY Shares Higher
Bed Bath & Beyond’s fundamentals also warrant at least some exposure for the remainder of 2026.
The retailer recently broke a 19-quarter streak of revenue declines by reporting a 6.9% year-on-year increase to $248 million in Q1, driven by a leaner cost base and lowered technology expenses.
In his research note, Wedbush Securities also emphasized that consecutive quarters of bottom-line improvements indicate a sustainable path toward stabilization.
Despite previous investor anxiety surrounding temporary share dilution from recent asset deals, the research firm believes BBBY’s optimized cost structures and cross-brand loyalty plans make it an incredibly attractive high-upside play at the current price.
What’s the Consensus Rating on Bed Bath & Beyond
Investors could also take heart in the fact that other Wall Street analysts remain bullish on BBBY stock as well.
According to Barchart, the consensus rating on Bed Bath & Beyond sits at “Moderate Buy” currently, with the mean price target of $9.75 indicating potential for a sizable rally from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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