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It’s possible that Bed Bath & Beyond is out of reach. Though B. Riley launched the stock with a $44 price target and an optimistic case for its new management and cost-cutting plans this week, two traders told CNBC’s “Trading Nation” on Thursday that the company doesn’t look particularly compelling at its present levels. Chantico Global founder and CEO Gina Sanchez said in a Thursday interview that the $3.5 billion company’s profitability and revenue growth expectations may appear higher than those of its sector peers, but they still fall short of the overall market. “It’s quite difficult to feel enthused,” she admitted. “We believe they are reasonably priced, and this isn’t necessarily a screaming buy.” Bed Bath and Beyond is up 78 percent year to date and trades at a projected price-to-earnings multiple of over 20.5 times. Sanchez added that the stock’s history as a Reddit favorite doesn’t help investors. “You’re very much too late after that momentum has established itself in the market,” she added, “because those momentum trades in some of these meme stocks have nothing to do with fundamentals.” “If you’re simply purchasing it for the sake of momentum, that’s the worst reason to buy because you’ll eventually end up being the bigger fool in the story.” Matt Maley, chief market strategist at Miller Tabak, said in the same “Trading Nation” interview that one way it could play out is due to Bed Bath & Beyond’s short interest. Maley said the company had especially strong short interest both times it was swept up in the Reddit trade this year, first when GameStop rose in January and then again when AMC soared in June. “It’s now sunk back down. It has an extraordinarily low short interest rate, not a high one. As a result, people must exercise extreme caution “Maley issued a warning. “If there is another short squeeze, Bed Bath and Beyond will not be one of the stocks crushed in that way.” So, while the company’s comeback tale may seem positive, the strategist believes it will take time for the stock to reflect it. “They’ve made some excellent improvements, and their earnings have been very decent,” he said. “But I just don’t believe people should be expecting another rocket-ship ride like we’ve seen two other times this year.” Disclaimer/nRead More

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