J.P. Morgan Raises BBBY Target From $52 To $56

J.P. Morgan is raising its Dec 11 PT on Bed Bath & Beyond Inc. BBBY to $56 from $52. “We are raising our December 2011 price target to $56 from $52 based on ~16.5x PE and 8.0x EV/EBITDA using our 2011 forecasts. This is slightly below its mixed historical five year FY1 PE and EV/EBITDA average as we believe that its lower footage and earnings growth rate beyond 2010 combined with emerging gross margin pressures necessitate a less rich valuation,” J.P. Morgan writes. J.P. Morgan maintains its Neutral rating. Bed Bath & Beyond closed Wednesday at $47.67.