Photo by Chris Hondros/Getty ImagesAfter the downturn in meme mania, Bank of America analysts resumed coverage of Bed Bath & Beyond.Analysts who briefly stopped coverage said that "the momentum from meme investing is likely to pass."BofA rated this stock as a buy, with a $38 price target.Check out more stories from Insider's business page.Analysts at Bank of America say that meme mania has cooled down for Bed Bath & Beyond, prompting them back to cover the stock for investors.Curtis Nagle, Bank of America analyst, stated that Bed Bath & Beyond shares "once again trade on fundamentals" and gave the stock a buy rating. After the stock price surged 62% within a single day, analysts with Bank of America stopped covering the company's story on June 3.After retail traders bought shares of GameStop, a New Jersey-based retailer of home goods, the Union became a meme stock. Retail traders hyped up shares in Bed Bath & Beyond again in June as meme stocks returned to the spotlight.Analysts stated that Bed Bath & Beyond saw a significant increase in mentions on the retail investor forums in January, May, and June. However, it was not as extreme as GameStop. However, Bed Bath & Beyond's "over the last two weeks has seen a sharp decrease in both of those factors which suggests that meme investing momentum has probably passed."The analysts stated that shares have returned to pre-surge levels since the craze began earlier in the month. They are also trading closer than before the surge, with trading volumes, short interest and social media hype all having slowed down. They also set a $38 price target on the stock, which was trading at $29.89 in New York at 11:26 p.m.Analysts attributed their optimism to Bed Bath & Beyond’s long-term turnaround. This includes the largest ever new product rollout by year end, store resets that improve the shopping experience, closing of 200 underperforming stores, and a rise in back-to school and wedding registry purchases once the economy reopens.Continue reading: Bank of America recommends that you buy these 31 stocks, which have an average implied upside of almost 30%. They are Bank of America's best ideas for 2021's second half.
