Jefferies Initiating Coverage On Bed, Bath & Beyond With Buy Rating (BBBY)

Jefferies & Co. is initiating coverage on shares of Bed Bath & Beyond BBBY with a $48 price target. In the report Jefferies & Co. notes, "The market doesn't appear to be fully appreciating the opportunity for additional operating margin improvements in FY12, and we believe a compelling unit growth story is reemerging, driven in part by new concepts buybuy BABY and Christmas Tree Shops, setting the table for strong long-term earnings growth. We are initiating coverage of Bed Bath & Beyond (BBBY) with a Buy-rating and 12-month price target of $48. Bed Bath & Beyond has clear opportunities for unit-growth driven by new concepts buybuy BABY and Christmas Tree Shops. The magnitude of square-footage growth potential here is rare for a category leader and a retailer of this size, and we believe it will continue to gain market share over time. The total unit count is currently up to 1,104 stores and we believe it could move well in excess of 2,200 over the long term, representing 100% in unit growth upside." Shares of Bed Bath & Beyond are up 44 cents to $38.78.