Bed Bath & Beyond Is a Penny Stock. Why Wall Street Still Covers It.

Bed Bath & Beyond

stock is falling again on Tuesday, with the retailer’s roller-coaster ride hitting new lows amid renewed bankruptcy fears—and another analyst price target cut. That begs the question—why bother?

Jefferies analyst Jonathan Matuszewski, who has a Hold rating on Bed Bath & Beyond shares (ticker: BBBY), cut his target to 50 cents from $3 on Tuesday, to account for the company’s fourth-quarter outlook, an update that sent the shares below $1 last week. Shares are down 4 cents to 35 cents in Tuesday morning trading.