Bed Bath & Beyond could gain share, analyst says

AP News
Posted: Dec 22, 2009 4:47 PM

Shares of Bed Bath & Beyond rose Tuesday after a Morgan Stanley analyst said the housewares retailer is poised to gain market share during the economic recovery.

Analyst Gregory Melich said the company's "survivor status" will help it in efforts to double its store base. In 2009 the company held on to its customers even as lower-priced competitors tempted shoppers amid the tough economy, Melich said. In fact, they gained some.

"Our survey indicates 35 percent of former Linens 'n Things shoppers went to Bed Bath & Beyond _ once there, they are unlikely to move to another store or channel," the analyst said. The parent company of Linens 'n Things filed for bankruptcy protection in May 2008 and subsequently liquidated its stores.

Melich holds an "Overweight" rating on the shares.

Bed Bath shares rose $1.33, or 3.5 percent, to close at $39.52.