Best Buy's Top-Line Trends Remain Pressured, Says Analyst
Portfolio Pulse from Shivani Kumaresan
BofA Securities analyst Robert F. Ohmes reiterated an Underperform rating on Best Buy Co Inc (NYSE:BBY) with a price target of $70.00, citing continued pressure on top-line trends and challenging industry conditions. The analyst expects a decline in enterprise comparable sales and continued weakness in the appliance category, despite some positive trends in laptop sales and digital comps. Best Buy's stock has gained over 1% in the last 12 months and is accessible via ETFs like Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV) and Invesco S&P 500 High Dividend Low Volatility ETF (NYSE:SPHD).
May 15, 2024 | 6:01 pm
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NEGATIVE IMPACT
BofA Securities analyst Robert F. Ohmes reiterated an Underperform rating on Best Buy Co Inc (NYSE:BBY) with a price target of $70.00, citing continued pressure on top-line trends and challenging industry conditions. The analyst expects a decline in enterprise comparable sales and continued weakness in the appliance category, despite some positive trends in laptop sales and digital comps.
The analyst's Underperform rating and price target of $70.00 indicate a negative outlook for Best Buy, driven by expected declines in comparable sales and continued weakness in the appliance category. This is likely to put downward pressure on BBY's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain access to Best Buy stock via Invesco S&P Ultra Dividend Revenue ETF (NYSE:RDIV).
The mention of RDIV as a way to gain access to Best Buy stock is informative but does not directly impact the ETF's price in the short term.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
NEUTRAL IMPACT
Investors can gain access to Best Buy stock via Invesco S&P 500 High Dividend Low Volatility ETF (NYSE:SPHD).
The mention of SPHD as a way to gain access to Best Buy stock is informative but does not directly impact the ETF's price in the short term.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
POSITIVE IMPACT
The analyst anticipates continued weakness in Best Buy's appliance category due to market share pressures from competitor Costco Wholesale Corporation (NASDAQ:COST).
Costco's competitive pressure in the appliance category is expected to negatively impact Best Buy, which could be beneficial for Costco's market position and potentially its stock price.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30