Oppenheimer said Bed Bath & Beyond’s potential bankruptcy could bode well for Target as the retailer makes up for sales from more store closures. “We think TGT could get better access to more brands over time,” analysts at Oppenheimer said in a note. Bed Bath & Beyond said Thursday it doesn’t have enough cash to pay down its loans and has defaulted on its line of credit with JPMorgan. In a securities filing, the struggling home goods retailer warned that “this will prompt the company to consider all strategic options, including restructuring its debt under the US Bankruptcy Code.” BBBY 5D Mountain Bed Bath & Beyond Bed Bath & Beyond’s stock plunged 22% after Thursday’s news. Oppenheimer said a full liquidation of Bed Bath and beyond could add a short-term 50-100 basis points to targeted comps and conservatively between 14 cents and 28 cents per share to earnings. Earlier this week, Oppenheimer initiated coverage of Target with an outperform rating, betting that the retailer will gain share from its challenger peers over time. Wall Street analysts are assessing which competitors will get the biggest boost. Both UBS and Telsey Advisory Group believe Walmart and Target stand to gain the most market share from Bed Bath & Beyond because the two have significant overlap with their product offerings and geographies.
Target is poised to benefit from Bed Bath & Beyond’s demise, Oppenheimer says