Bed Bath & Beyond Stock Rallies on Citron Bullish Call
By Sam Boughedda
Investing.com — Bed Bath&Beyond Inc (NASDAQ:BBBY) shares rallied over 11% Friday after Citron Research said the "stock is on sale."
Citron cited the company's recent announcement that it was accelerating its $1 billion share repurchase program to be completed by fiscal 2021.
BBBY shares are trading at $22.40 in the mid-afternoon.
On its website, Citron said: "On November 2, $BBBY announced that it was accelerating its $1 billion three-year share repurchase program to now be completed by the end of fiscal 2021. The last time we saw a buyback this aggressive and bullish was from Citron favorite RH when the co. announced a $700 million buyback authorization in May 2017 when the stock was trading at $52."
RH's stock currently trades around the $650 per share mark. However, Citron's Andrew Left clarified that he isn't saying BBBY will be the next RH, but that there are similarities between the two situations.
Citron applied a multiple of five times earnings before interest, taxes, depreciation and amortization to 2024 earnings of $800 million to $1 billion and got to a price target of $50 to $70 a share. Citron said it "can see why management sees value here."
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