Bank of America Securities analyst Robert Ohmes reiterated a Sell rating on Best Buy Co (BBY – Research Report) yesterday and set a price target of $75.00.
Robert Ohmes has given his Sell rating due to a combination of factors impacting Best Buy Co. The company is facing uncertainty in the consumer electronics industry and potential negative effects from tariffs, as a significant portion of its cost of goods sold comes from China and Mexico. Although Best Buy reported better-than-expected earnings for the fourth quarter, driven by strong performance in computing and tablets, the overall outlook remains challenging.
Ohmes notes that while there is potential support from gaming in the second half of the year, the near-term outlook is weakened by tepid consumer demand and less impactful sales events. Additionally, the pressure from labor rates due to investments in store labor and the likelihood of price increases from tariff costs being passed on by vendors contribute to a cautious stance. As a result, Ohmes reiterates an Underperform rating, reflecting concerns over both short-term and long-term market share pressures from omnichannel competition.
Based on the recent corporate insider activity of 63 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.
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