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Best Buy facing competition and innovation challenges, says Argus

Argus keeps a Hold rating on Best Buy with no price target while raising the firm’s FY25 EPS view by 5c to $6.10 and its FY26 view by 4c to $6.76. The analyst points to the company’s better than expected Q1 results but also warns that Best Buy is facing three major challenges apart from the economy. These include intense competition from online and big-box retailers, product innovation that has consolidated music, video, computing, communications, gaming, and photography, and a slowdown in the smartphone market, Argus notes, adding that it also sees the stock as “fairly valued”.

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