UPDATE: Goldman Sachs Raises PT on Bed Bath & Beyond to $63

Goldman Sachs is out with its report today on Bed Bath & Beyond BBBY, raising its PT from $60 to $63. In a note to clients, Goldman Sachs writes, "We are raising our estimates as follows: 2011 to $3.72 from $3.50; 2012 to $4.27 from $4.05; and 2013 to $4.83 from $4.55. While our 2Q forecast ($0.87) stands well above guidance, even it implies quite conservative sequential sales and margin trends. Our annual estimate looks quite reasonable, as well, as it embeds significant gross margin erosion, as input cost inflation works its way through current inventory to the point of sale – and somewhat higher expense growth. We are raising our 12-month price target (derived from risk/reward analysis on P/E and DCF) by $3, to $63, commensurate with our estimate hikes." Goldman Sachs maintains Neutral on BBBY. At the time of posting, shares of BBBY were trading pre-market at $55.07, down 1.87% from Wednesday's close.