Bed Bath & Beyond bucks Powell selloff, rallies ahead of strategy update

Sixth Street Specialty Lending

29/08/2022 17:54

** Shares of Bed Bath & Beyond Inc  BBBY.O  up 19.6% at
$12.80 as the embattled retailer defies continued Wall Street
selloff on Mon
    ** BBBY's stock rose 5.9% on Fri even as all three major
benchmarks tumbled >3% after Fed chair Powell's hawkish Jackson
Hole speech  .N 
    ** After the bell Thurs, BBBY set its business update conf
call for Weds, Aug 31, at 8:15 am EDT  urn:newsml:reuters.com:*:nPn18lxl3a
    ** Morgan Stanley in note to clients on Sun said one of the
most important items of the update is magnitude of potential
financing co has secured, as well as support from its vendors
    ** MS analyst Simeon Gutman said investors should also look
for how BBBY plans to stabilize its business, and navigate the
upcoming holiday season
    ** Specific guidance on comp-store sales and EBITDA, and its
intentions for buybuy BABY brand are also in the spotlight,
Gutman said
    ** For fiscal 2022, MS models -14% comp sales (following
-23% in Q1), EBITDA loss of $212 mln and negative free-cash-flow
of $918 mln
    ** MS has "underweight" rating on BBBY with $2 PT; median PT
is $3.25, per Refinitiv
    ** According to media reports last week, co nearing final
terms with investment firm Sixth Street for up to $400 mln loan
 urn:newsml:reuters.com:*:nL4N3003LC
    ** On Aug 19, BBBY's stock sunk 41% after activist investor
Ryan Cohen dumped his entire stake  urn:newsml:reuters.com:*:nL4N2ZU2DC
    ** YTD, shares now down ~13%, including >150% gain this
month

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))