Bed Bath & Beyond (BBBY) is poised for stronger growth as cost cutting winds down, Wedbush said Tuesday in a report.

The company is consolidating Buy Buy Baby under the Bed Bath & Beyond brand and plans to "unlock value" from its tZERO and Medici assets, Wedbush said.

Steady revenue and profit gains are projected as Overstock.com expands, gross margins improve, and Bed Bath & Beyond attracts customers across household milestones, the report said.

Projected fiscal Q3 revenue of $268 million is ahead of the consensus of $260 million, and "we see more upside than downside risk to topline estimates, with website and industry data trending positively," while tariff risks appear less severe, Wedbush said.

Bed Bath and Beyond is expected to post sequential revenue growth and narrower losses through 2025 as rebranding, traffic generation, and repeat business initiatives continue, the report said.

Wedbush maintained its outperform rating on Bed Bath & Beyond stock and its $13 price target.

The company is scheduled to report Q3 results on Monday.

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