Best Buy price target raised to $95 from $88 at Jefferies

Jefferies analyst Jonathan Matuszewski raised the firm’s price target on Best Buy (BBY) to $95 from $88 and keeps a Buy rating on the shares. The caliber of Best Buy’s retail media organization with new leadership in charge and a number of media sales executives having recently been hired is “top-notch,” argues the analyst, who sees Best Buy Ads contributing to annual gross margin expansion versus investor expectations for contraction. With another alternative profit stream poised to increasingly enter the narrative, the firm believes “outdated investor perceptions” of the business model will be gradually reshaped, adds the analyst, who notes that the firm’s calendar year 2026-2028 EPS estimates are an average of about 10% above the Street view.