Citi Reports Bed Bath & Beyond 4Q Results Conference Call

According to Citi, Bed Bath & Beyond BBBY is reporting 4Q results. Citi reported that Bed Bath & Beyond plans to report Q4'11 earnings today at 4:15pm with a conference call at 5pm EST. The dial in number is 1-800-281-7973. “Our $59 target price is based on a simple average of our forward P/E analysis and 10-year discounted cash flow analysis. Over the past five years, BBBY has traded at an average forward P/E of 17.1x (ranging from 11.8x to 23.8x) and at a 9% premium to the big box peer group. If we apply an 18x multiple to our FY12 estimate of $3.31, we reach a valuation of ~$60. Based on our ten year DCF, we calculate a value of ~$57 for BBBY. We assume net income growth rate of 7.5% from 2013 through 2016, 3% growth afterwards and a terminal growth rate of 3%, and a weighted average cost of capital (WACC) of 8.84%. Our WACC estimate is based on: a beta assumption of 1.0, a risk premium of 5.84%, a risk free rate of 2.77% and our assumption of BBBY's average post tax cost of debt is 0%.” Bed Bath & Beyond closed yesterday at $48.90.