Analyst Robert Ohmes from Bank of America Securities maintained a Sell rating on Best Buy Co (BBY – Research Report) and keeping the price target at $75.00.
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Robert Ohmes has given his Sell rating due to a combination of factors impacting Best Buy Co. The forecast for the first quarter earnings suggests a slight improvement, with expected earnings per share aligning with consensus estimates. However, the overall enterprise comparable sales are projected to decline slightly, indicating ongoing challenges in demand. Although there is a temporary boost in sales due to pre-orders and tariff-related demand shifts, these factors are not expected to sustain long-term growth.
Ohmes also notes that while there is a minor benefit from a reduction in Geek Squad members, the pressure on margins remains due to the competitive nature of the consumer electronics market and the shift towards online sales, which typically have lower margins compared to in-store purchases. Furthermore, despite some relief from reduced tariffs, the uncertainty surrounding tariffs, combined with a lack of innovation and increased competition from omnichannel retailers, contributes to a weaker outlook for Best Buy. These elements collectively support the decision to maintain a Sell rating.
Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BBY in relation to earlier this year.