Telsey downgrades Best Buy on weakening consumer demand

Telsey Advisory analyst Joseph Feldman downgraded Best Buy to Market Perform from Outperform with a price target of $83, down from $88. The analyst believes Best Buy’s business is likely to experience a further decline related to the "challenging" macro trends weighing on discretionary consumer demand, given high inflation and rising interest rates. The firm’s updated view also incorporates the disappointing outlook provided by other retailers, including Home Depot and Walmart. Best Buy’s valuation now fairly reflects current business trends, the analyst tells investors in a research note.