Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Author
Derick Lim
Apr 24, 2023 7:35AM ET
Your misfortune is my fortune......
1
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
Analysts see these stocks benefiting from Bed Bath & Beyond bankruptcy
Published Apr 24, 2023 07:00AM ET
Updated Apr 24, 2023 07:09AM ET
© Reuters Analysts see these stocks benefiting from Bed Bath & Beyond (BBBY) bankruptcy
By Senad Karaahmetovic
Bed Bath & Beyond (NASDAQ:BBBY) shares are down over 40% in premarket Monday after the retailer filed for bankruptcy protection.
The company said it is still interested in pursuing a sale instead of liquidation should a bidder for the business come forward.
“The Company has received a commitment of approximately $240 million in debtor-in-possession financing ("DIP") from Sixth Street Specialty Lending Inc (NYSE:TSLX). Following court approval, the Company expects this financing to provide the necessary liquidity to support operations during the Chapter 11 process,” BBBY said in a press release.
Wall Street analysts weighed in on the news with Evercore ISI analysts still hopeful that the company will find a buyer for its Buy Buy Baby concept. On the other hand, Piper Sandler analysts said the Chapter 11 filing is a positive for Target (NYSE:TGT) and Walmart (NYSE:WMT).
“We believe that we are entering a new phase of retail industry consolidation and that Target and Walmart will be long-term share beneficiaries,” Piper Sandler analysts wrote in a note.
Specifically, the analysts believe BBBY’s market share will largely go to Target, Walmart, and Amazon (NASDAQ:AMZN).
“Investments in store pickup, store experience, and e-comm are driving share gains at both TGT and WMT, and we expect these to accelerate as we enter a new phase of retail consolidation.”
Similarly, BofA analysts agree that these three companies will benefit from the likely BBBY bankruptcy. In addition, they see Wayfair (NYSE:W) and Overstock (NASDAQ:OSTK) seeing “a degree of revenue upside.”
“We estimate that for every 5% of Bed Bath & Beyond revenue (not including Buy Buy Baby), Wayfair revenue would increase 2% with high adjusted EBITDA flowthrough (we estimate low-to-mid tens of millions). For Overstock, we estimate that for every 1% of Bed Bath revenue (we adjust down given Overstock US revenues are less than 20% of Wayfair), Overstock revenues would increase 3% and adjusted EBITDA could increase by ~$10mn (or nearly 1ppt),” the analysts explained.
On the other hand, they don’t expect to see RH (NYSE:RH) nor Arhaus (NASDAQ:ARHS) benefiting from the Bed Bath & Beyond bankruptcy.
Related Articles
Comments (1)
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.