Bed Bath & Beyond’s latest attempt to tackle its struggling business has only pushed the company’s problems down the road, according to Raymond James. Analyst Bobby Griffin downgraded the undervalued retailer’s stock to underperforming the market, saying in a note to clients Thursday that the cash burn is happening at the company. company makes it difficult to maintain a neutral stance going forward. “Yes, the new funding will improve the company’s liquidity position (~$1 billion in available liquidity after the new debt offering versus $500 million in previous liquidity), but there is a possibility that likely to just ‘knock down the road’ as underlying business trends remain very low, with comparable sales down ~26% y/y (no sign of improvement) and decent quarterly cash burn big ($325 million in FCF in F2Q),” he said. Raymond James’s downgrade comes after the company announced its latest strategic plan on Wednesday to pivot its business and cut costs by cutting its workforce by 20%, closing stores and secured more than $500 million in new financing. While Bed Bath & Beyond has also said it will bring in more branded products, Griffin sees flaws in the company’s ability to improve performance as consumer and housing spending slows. again. At the same time, the company’s ongoing cash burn could preclude necessary procurement and remodeling changes to improve customer flow, Griffin said. “As a result, we feel the Underperforming Rating is more relevant than our previous Market Rating,” he wrote. “We will change our stance if we see signs of steady cash flow generation again and stability in sales trends.” Bed Bath & Beyond shares are down about 33% this year but ended August up more than 89%. Retail shares fell more than 4% in money markets after sliding 21% on Wednesday. – CNBC’s Michael Bloom contributed reporting