Analyst Simeon Gutman from Morgan Stanley maintained a Hold rating on Best Buy Co (BBY – Research Report) and keeping the price target at $100.00.
Simeon Gutman has given his Hold rating due to a combination of factors that suggest a balanced risk/reward scenario for Best Buy Co. The company’s stock is currently trading at a valuation that is approximately 8% higher than its long-term average, which indicates limited upside potential. While Best Buy has managed its margins well despite a challenging top-line environment, the company faces increased dependency on top-line growth in 2025 due to fewer levers such as membership offerings and incentive compensation benefits.
Gutman anticipates a modest beat in Q4 earnings per share and comparable sales, aided by promotional activities and easier comparisons. However, the potential for significant growth is tempered by the current market conditions and the need for the product and replacement cycle to turn. The balanced upside and downside risks, with a projected 11% upside to the price target, support the Hold rating, reflecting a cautious yet optimistic outlook for the company’s near-term performance.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BBY in relation to earlier this year.