Simeon Gutman, an analyst from Morgan Stanley, maintained the Hold rating on Best Buy Co (BBY – Research Report). The associated price target was lowered to $85.00.
Simeon Gutman has given his Hold rating due to a combination of factors influencing Best Buy Co’s stock performance. The potential for growth exists, particularly if the product cycle continues to drive comparable sales growth in key segments like computing and mobile phones. However, this optimistic outlook is tempered by several risks, including the impact of tariffs, ongoing industry softness, and potential loss of market share.
Additionally, the guidance for 2025 appears challenging, with expectations for a second-half weighted recovery that may not materialize without a stronger product cycle or improved consumer spending. The persistence of tariffs could further exacerbate these challenges by inflating costs and dampening demand. Consequently, while there is some upside potential, the risks and uncertainties lead to a more cautious Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $89.00 price target.
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