B. Riley initiates coverage of bed bath & beyond, says reddit favorite can rise 30%

B. Riley initiated coverage of Reddit favorite Bed Bath & Beyond on Wednesday and said its share price could surge more then 30%. "We believe BBBY's new management team has

made significant improvements to reduce the cost structure and make necessary investments to elevate BBBY into a top omni-channel retailer in the bed, bath, and home space," B.

Riley's Susan Anderson said in a note. Anderson lauded the company's plans to cut costs by closing stores while improving profit through e-commerce and proprietary brands. The firm

gave the retail stock a buy rating and set its price target at $44, implying 32.2% upside from Wednesday's closing price of $33.29. The call comes after the stock saw wild trading on

Wednesday following mixed first-quarter fiscal results , with its price falling, then surging as more than 50 million shares changing hands. Bed Bath & Beyond shares are up more than 87%

in 2021 amid speculative trading as the company garnered enthusiasm from retail investors, similar to moves seen in GameStop and AMC this year. Even given the stock's massive rally

this year, B. Riley believes Bed Bath & Beyond's shares are undervalued. "We believe that BBBY should be trading closer to peer valuations due to the significant progress the

company has made," Anderson said. The firm also noted that the company should see a boost during back-to-school season as college students who stayed home last year during the pandemic

will now buy dorm room products for on-campus learning. — CNBC's Michael Bloom contributed to this report.