NEW YORK (TheStreet) -- Before Wednesday's market open, Bed Bath & Beyond (BBBY) - Get Bed Bath & Beyond Inc. Report stock price target was dropped to $50 from $56 at Nomura, which maintained a "neutral" rating on the retailer because of its long-term prospects.
"We are taking a more conservative stance to our 2016 and 2017 expectations as we believe margins will continue to be pressured by coupon expense and investment in technology," Nomura analysts said in a note this morning.
While the Union, NJ-based home products retailer has a strong cash flow and an attractive valuation, the company faces pricing pressure from competitors, analysts added.
In the short-term, Bed Bath & Beyond is expected to report a year-over-year increase in earnings per share and revenue when the company releases its fiscal 2015 fourth quarter results on April 6 after the market close.
Overall, Wall Street is anticipating earnings of $1.81 per share on revenue of $3.38 billion for the latest quarter, compared with earnings of $1.80 per share on revenue of $3.34 billion for the fiscal 2014 fourth quarter.
Bed Bath & Beyond stock closed up 0.12% to $49.59 on Wednesday.
Separately, Bed Bath & Beyond has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as revenue growth, attractive valuation levels and good cash flow from operations, and its weaknesses, including deteriorating net income, generally disappointing stock performance and feeble earnings per share growth.
You can view the full analysis from the report here: BBBY
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.