Morgan Stanley grows bearish on home furnishing retailers during COVID-19 recovery, downgrades Bed Bath & Beyond & Wayfair

Morgan Stanley downgraded both Bed Bath & Beyond Inc. and Wayfair Inc. to underweight from equal-weight, following an examination of personal consumption expenditures [PCE] and how consumer spending will shift as the COVID-19 recovery continues.

“As life returns to normal, stimulus payments stop, and services spending resumes, durable goods’ share of PCE should recede,” analysts wrote in their report.