Bed Bath & Beyond Inc (BBBY.O) shares could rise 25 percent over the next year on strong profit and a higher multiple, but could fetch a 43-percent premium in an acquisition, Barron's said on Sunday.
There is no indication that the retailer is looking to sell itself, Barron's said In its March 11 edition. It just noted that the company's retailing acumen and financial strength would appeal to private equity investors or even Berkshire Hathaway Inc (BRKa.N).
The shares closed at $59.37 on Friday. Barron's said a buyer might pay $85 per share, roughly 10 times this fiscal year's projected operating earnings.
The market only values the shares at 6.5 times earnings, Barron's said, due in part to slowing sales gains, profit disappointment and weak website that makes it vulnerable to internet retailers like Amazon.com (AMZN.O).
(Reporting By Martinne Geller in New York; Editing by Maureen Bavdek)