Bed Bath & Beyond (BBBY) stock soared on June 23 and continued to move upward on June 24 after Wedbush Securities analysts led by Seth Basham dubbed the retailer a discounted value play.
Basham upgraded BBBY this week to “Outperform” and announced an ambitious $11 price target, indicating potential upside of another 65% from current levels.
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Despite recent gains, Bed Bath & Beyond shares remain down more than 10% versus their year-to-date high.
Why Is Wedbush Bullish on Bed Bath & Beyond Stock?
Basham’s bullish view centers on BBBY’s aggressive 2026 transformation under its consolidated e-commerce and retail portfolio.
According to Basham, investors are fundamentally undervaluing the company’s recent strategic moves, including an all-stock merger with Fathom Holdings and the acquisition of F9 Brand assets, like LL Flooring.
These integrations position Bed Bath & Beyond to become a premier end-to-end homeownership and services platform.
At about 0.41x sales, BBBY shares currently reflect a big disconnect from the firm’s actual revenue-generating capabilities and its expanding digital footprint, he added.
Note that options pricing also signals continued upside ahead, with the upper price on contracts expiring mid-September set at $8.86 at the time of writing.
Improving Bottom-Line to Drive BBBY Shares Higher
Bed Bath & Beyond’s fundamentals also warrant at least some exposure for the remainder of 2026.
The retailer recently broke a 19-quarter streak of revenue declines by reporting a 6.9% year-on-year increase to $248 million in Q1, driven by a leaner cost base and lowered technology expenses.
In his research note, Wedbush Securities also emphasized that consecutive quarters of bottom-line improvements indicate a sustainable path toward stabilization.
Despite previous investor anxiety surrounding temporary share dilution from recent asset deals, the research firm believes BBBY’s optimized cost structures and cross-brand loyalty plans make it an incredibly attractive high-upside play at the current price.
