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Best Buy Co. Faces Sell Rating Amid Tariff Challenges and Mixed Segment Performance

Best Buy Co. Faces Sell Rating Amid Tariff Challenges and Mixed Segment Performance

Bank of America Securities analyst Robert Ohmes reiterated a Sell rating on Best Buy Co (BBYResearch Report) yesterday and set a price target of $63.00.

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Robert Ohmes has given his Sell rating due to a combination of factors impacting Best Buy Co. The company has lowered its guidance for the fiscal year 2026, citing the adverse effects of tariffs, which are expected to impact the cost of goods sold. Despite some strength in the computing and tablets segment, other areas like home theater and appliances are experiencing declines, contributing to a flat overall comparable sales outlook.
Additionally, the gross margin is anticipated to contract slightly due to an unfavorable product mix, despite potential growth in Best Buy Ads and the rollout of the US Marketplace. The operating margin is expected to remain flat, with some efficiencies in selling, general, and administrative expenses offset by investments in advertising and marketplace initiatives. The overall uncertain outlook, compounded by industry challenges and competitive pressures, has led to a reduced price objective and a reiterated Underperform rating.

According to TipRanks, Ohmes is a 5-star analyst with an average return of 8.9% and a 58.47% success rate. Ohmes covers the Consumer Cyclical sector, focusing on stocks such as AutoZone, O’Reilly Auto, and Best Buy Co.

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