The market response to Bed Bath & Beyond (NASDAQ:BBBY) fundamentally restructuring itself by shedding noncore assets and focusing on its digital future has caused its stock price to double.

Shares in the home goods retailer over the last 30 days have risen from about $12 to over $24, and now an analyst thinks they can double again.

Woman looking at housewares

Image source: Getty Images.

More to come

Baird analyst Peter Benedict told investors in a research note that despite Bed Bath & Beyond's meteoric rise, the bullish case remains weighed down by doubt. He believes, though, that if the retailer can hit its targets, the stock could very well double in value again.

He contends Bed Bath & Beyond has the potential to make significant profit gains because it has the financial wherewithal to support its ambitious transformation. Moreover, it can do so while returning meaningful amounts of capital to shareholders. 

Under the leadership of CEO Mark Tritton, the home goods store is focusing on its core businesses again, which made the retailer an enviable growth story before previous management took it off on tangents. In doing so, Bed Bath & Beyond ignored crucial infrastructure investments it needed to make, such as shoring up its digital offerings.

While there's been a marked difference from where it was, Bed Bath & Beyond is still climbing out of a very deep hole.

Despite the stock jumping 101% in the last 30 days and soaring over 600% from its April lows, the retailer still needs to prove its strategy will translate into higher sales. Second-quarter comparable-store sales rose 6%, their first gain in four years, on the strength of digital sales, but store comps were down 12% year over year. 

That shows Bed Bath & Beyond still has a long way to go.