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Bed Bath & Beyond stock soars on financing news ahead of company’s strategic update

Yahoo Finance Live anchors break down Bed Bath & Beyond financing news that sent the stock higher on Monday.

Video Transcript

[AUDIO LOGO]

SEANA SMITH: All right, my play today is Bed Bath & Beyond. Shares soaring ahead of its highly anticipated strategic update tomorrow. Now, the struggling retailer set to hold a conference call tomorrow. The "Journal" reporting last week, that Bed Bath & Beyond was nearing final-- nearing final terms for a loan close to $400 million.

Now, despite the interest from some investors, Wall Street analysts are really warning against buying the stock. Wedbush analyst, one of those people, Seth Basham, reiterating his underperform rating on the stock today, saying that the company is, quote, "significant operational and balance sheet challenges leave us cautious. We believe current risk-reward still remains disproportionately skewed to the downside." Dave, you and I have talked about this name so often.

DAVE BRIGGS: That we do.

SEANA SMITH: Whenever there is a development, whenever anything could potentially be positive. We're seeing the retail crowd-- it seems like the retail crowd-- really pile into this name. You see Wedbush just one of the analysts here not changing their tune at all, really warning investors against getting into this name because certainly, we haven't seen any material change in terms of the playbook from this company.

Maybe we'll hear something tomorrow. I'm not totally sure exactly how substantial it's going to be. And they certainly have a lot of headwinds, a lot of challenges to work out in the short term, to put it lightly.

DAVE BRIGGS: We do talk about them a lot. We rarely talk about the fundamentals of the company, though.

SEANA SMITH: Yes.

DAVE BRIGGS: We're usually talking about the meme trade and the retail traders driving this stock. 12 analysts were surveyed by Factset. One was bullish on the stock. They had an average price target of 370. That's a downside of north of 60%, so that is ugly. But you know, you and I talked about this earlier at the break, it's still a store that-- I don't know about you, everyone in my world relies on.

SEANA SMITH: Oh, I love it.

DAVE BRIGGS: If they need anything for the kitchen or the bathroom, they go there. So there does seem like something could be there in the strategic update. But when you walk in that store and when you look at the stock, not optimistic.