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Jefferies stands out with large Mattress Bathtub goal worth will increase

A buyer walks into the Mattress Bathtub & Past retailer in Novi, Michigan, US, on January 29, 2021. REUTERS/Emily Elconin/File Picture

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Sept 2 (Reuters) – Jefferies analysts almost doubled their worth goal on Mattress Bathtub & Past ( BBBY.O ) this week, a day after the struggling retailer revealed it had tapped Jefferies funding bankers for the inventory. gross sales.

Brokerages sometimes have a strict separation between fairness analysts who cowl firms and funding bankers who work for them. There isn’t a suggestion that Jefferies’ mattress tub analysis notes and the corporate’s hiring of Banks had been associated.

In a be aware printed Wednesday, Jefferies analyst Jonathan Matuszewski raised his worth goal on Mattress Bathtub from $5 to $9, citing confidence within the firm’s cost-cutting measures, which embody job cuts and retailer closings.

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That is the best worth goal on Mattress Bathtub’s inventory among the many 16 analysts who cowl it which can be tracked by Refinitiv, with the median worth goal at the moment listed as $3.

On Thursday, Raymond James, one other brokerage, downgraded Mattress Bathtub to “underperform” from “market carry out”.

“We’re additionally challenged to keep up our impartial ranking given present enterprise developments and ongoing money burn,” Raymond James analyst Bobby Griffin wrote in a be aware.

Mattress Bathtub additionally disclosed on Wednesday that it had employed Jefferies to promote 12 million shares within the open market. Jefferies is entitled to a fee of as much as 3% of the quantity bought, in response to regulatory filings.

Jeffery and Mattress Bathtub representatives didn’t reply to requests for remark. Mattress Bathtub shares ended Thursday buying and selling down 8.6% at $8.71.

Buyers view Mattress Bathtub as one of many so-called “meme” shares, these shares which can be based mostly totally on social media hype reasonably than their monetary fundamentals. It is not the primary time Jefferies analysts have taken a bullish view on a meme inventory that is out of sync with the remainder of Wall Avenue.

In March 2021, Jefferies analysts raised their worth goal on online game retailer GameStop Corp’s ( GME.N ) inventory from $15 to $175, citing the corporate’s concentrate on on-line gross sales. Based on Refinitiv, the value goal among the many seven analysts masking the corporate was a lot greater than the $25 median. As with Mattress Bathtub, Jefferies was dealing with GameStop’s inventory gross sales program on the time.

GameStop shares traded as excessive as $302.56 in June 2021. They ended buying and selling Thursday at $27.63, equal to $110.52, accounting for a four-for-one share cut up final July. The final worth goal change from Jefferies on GameStop was in June, earlier than the inventory cut up, from $90 to $110, Refinitiv information reveals.

(This story amends final paragraph to permit for GameStop inventory cut up)

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Reporting by Noel Randevich in San Francisco and Sveva Herbst-Baylis in Rhode Island Enhancing by Greg Roumeliotis and Chris Rees

Our Requirements: Thomson Reuters Belief Ideas.

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