Bed Bath & Beyond can fall 30% as Reddit frenzy slows, KeyBanc says

People wearing face masks walk past the Bed Bath & Beyond store in New York City.
John Nacion | SOPA Images | LightRocket | Getty Images

Bed Bath & Beyond appears to have lost momentum from Reddit-inspired traders, and its fundamental turnaround also may be losing steam, according to KeyBanc Capital Markets.

The stock reemerged as a meme trade earlier this month but has pulled back as that retail trading energy has dissipated. Shares have fallen more than 14% in the past two sessions on daily volume of less than 7 million shares. Volume topped 100 million on June 2.

KeyBanc analyst Bradley Thomas reiterated an underweight rating on the stock, saying in a note to clients on Thursday evening that the retailer's sales appeared to dip in the back half of the spring and the shares still have significant downside.

More In Street Calls

CNBC ProJefferies says to buy new space stock Redwire, calls for 50% upside
CNBC ProHere are Tuesday's biggest analyst calls of the day: Netflix, Disney, Tesla, Roku, Coinbase & more
CNBC ProBank of America says Roku sell-off is 'overdone,' sees more than 50% upside for stock