Analyst Robert Ohmes from Bank of America Securities reiterated a Sell rating on Best Buy Co (BBY – Research Report) and keeping the price target at $80.00.
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Robert Ohmes has given his Sell rating due to a combination of factors impacting Best Buy Co’s current and future performance. The company is anticipated to report a smaller benefit from its membership and services offerings in the upcoming fiscal quarter, which could affect gross margins negatively. Additionally, there is an expectation for lower product margin rates compared to the previous quarter, and the impact from credit card profit sharing is expected to be neutral.
Furthermore, while there is some optimism about computing comps remaining positive due to the replacement cycle and the end of life for Windows 10, other areas such as appliances and consumer electronics are likely to remain under pressure due to promotional activities. The overall outlook is further clouded by industry challenges, lack of innovation, and market share pressures from omnichannel competitors. These factors contribute to a weaker near and long-term outlook for Best Buy, justifying the reiterated Underperform rating with a price objective of $80.
BBY’s price has also changed slightly for the past six months – from $87.040 to $89.780, which is a 3.15% increase.