Bed Bath & Beyond (BBBY) has partnered with DoorDash (DASH) to expand its home delivery service. The two are coming together to make it easier and more convenient for customers to shop online. The same-day delivery partnership builds on a successful launch in Canada last month.
DoorDash Delivery, the platform that ensures direct delivery, will power Bed Bath & Beyond’s Same Day Delivery service. Its integration will expand the same-day delivery service to over 3,000 zip codes across the nation. (See DoorDash stock analysis on TipRanks)
Bed Bath & Beyond will now be able to deliver items at people’s homes the same day from almost all retail outlets, offering customers increased efficiency in online shopping. Once a purchase is made, DoorDash will pick up and deliver the package to the specified address, without interacting with the customers. (See Bed Bath & Beyond stock analysis on TipRanks)
"We're executing on our strategy to being an omni-always retailer to provide customers with the convenience of Buy-Online-Pickup-In-Store, contactless Curbside Pickup, and multiple Same Day Delivery options through existing partnerships with Shipt, Instacart and now Door Dash," said Bed Bath & Beyond EVP Rafeh Masood.
Credit Suisse analyst Lavesh Hemnani has initiated coverage of the stock with a Hold rating. According to the analyst, the company's 10-times forward earnings are a discount to other retailers who are exposed to the housing market. However, Bed Bath and Beyond faces significant risk of operating margin erosion and slowing square footage growth.
The analyst has a $19 price target on the stock, implying 28.30% downside potential to current levels.
Consensus among analysts on Wall Street is a Hold based on 1 Buy, 8 Hold and 2 Sell ratings. The average analyst price target of $26.22 implies 1.06% downside potential to current levels.
BBBY scores 4 out of 10 on TipRanks' Smart Score rating system, implying its performance is likely to align with market averages.