UBS sees these retail stocks winning from a potential Bed Bath & Beyond bankruptcy

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Doubts about Bed Bath & Beyond's future opens a door for other retailers to pick up market share, says UBS

What's bad for Bed, Bath & Beyond could be good news for other retailers. Bed Bath & Beyond warned last week that it is running out of cash and is considering filing for bankruptcy protection . The home-goods retailer is preparing to file for Chapter 11 within weeks, according to the Wall Street Journal . "It appears BBBY's hopes of a turnaround story are diminishing," UBS analyst Michael Lasser said in a note Friday.

For Target, the same outcome would contribute 125 basis points to 150 basis points of incremental comparable growth, translating to 5% to 10% of EPS accretion, he said. TGT 1Y mountain Target's one-year performance The two dominant retailers aren't the only potential beneficiaries. Dollar stores, warehouse clubs and department stores are also among rival chains that could take share, according to UBS.

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Bed Bath & Beyond warns of potential bankruptcy - San Francisco Business TimesThe company has a dozen locations in the Bay Area, and others have already closed over the past year.
Sumber: SFBusinessTimes - 🏆 78. / 68 Baca lebih lajut »