Despite the best efforts of all concerned, sometimes product issues do crop up. And it’s good news that businesses are ready to respond appropriately when these things do happen. Electronics retailer Best Buy (NYSE:BBY) showed us exactly how well that can work as its share price went up fractionally in the closing minutes of Friday’s trading after announcing a huge recall effort.
Best Buy issued a recall notice on its house-brand Insignia-made air fryers and air fryer ovens. The devices can overheat, causing their glass doors to potentially shatter. In addition, handles can break or even outright melt. So far, 24 such fryers have seen melting and glass-shattering, and six of the reports featured a fryer catching on fire.
Best Buy is offering a refund in the form of store credit or a check if the devices are returned. However, in an odd twist, the recall effort is being handled entirely online, and no credit or checks will be issued for devices returned to a store.
Meanwhile, Discounts Are Firing Up
Best Buy has some significant deals coming out. With the NCAA basketball tournament series—otherwise known as March Madness—poised to start on Tuesday, the company is offering steep discounts on televisions. Meanwhile, those who want to get some work done instead will find several discounts on laptops. Here, Best Buy finds itself in stiff competition with Amazon (NASDAQ:AMZN), so it’s not much surprise that it’s working as hard as it is to make some sales.
Is BBY a Good Buy Right Now?
Turning to Wall Street, analysts have a Hold consensus rating on BBY stock based on five Buys, nine Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 6.28% rally in its share price over the past year, the average BBY price target of $83.93 per share implies 7.49% upside potential.
