The firm said it lowered its rating on the retail chain based on the risks Bank of America/Merrill Lynch could see due to the company's modest store traffic trends and the continuing sales pressure from its online competition.
Bank of America cut its price target on the stock to $51 from $63.
Shares of Bed Bath and Beyond are up 0.91% to $59.89 in pre-market trading on Monday.
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Separately, TheStreet Ratings team rates BED BATH & BEYOND INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BED BATH & BEYOND INC (BBBY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: