Analyst Jonathan Matuszewski of Jefferies maintained a Buy rating on Best Buy Co, retaining the price target of $88.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Jonathan Matuszewski has given his Buy rating due to a combination of factors, primarily centered around Best Buy’s recent launch of its third-party (3P) marketplace in the U.S. This strategic move has significantly expanded Best Buy’s product offerings by doubling the number of products available, introducing new categories such as seasonal decor, automotive tech, and licensed sports merchandise. The marketplace launch is expected to replicate the success seen in Canada, where Best Buy’s digital sales and profits were notably boosted.
Furthermore, Matuszewski highlights that the U.S. marketplace presents a substantial opportunity for high-margin commissions, given that Best Buy’s U.S. business is approximately 12 times larger than its Canadian counterpart. The Canadian marketplace has shown impressive growth since its inception, with the number of SKUs and sellers increasing significantly over the years, leading to record growth and a substantial portion of orders being fulfilled by third-party sellers. This success story in Canada positions Best Buy well for similar achievements in the U.S., reinforcing the Buy rating.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $80.00 price target.