Steven Zaccone, an analyst from Citi, maintained the Buy rating on Best Buy Co (BBY – Research Report). The associated price target remains the same with $93.00.
Steven Zaccone has given his Buy rating due to a combination of factors that suggest potential growth and stability for Best Buy Co. The consumer electronics industry is showing signs of recovery, and Best Buy has specific strategies in place to enhance its gross margins through its marketplace and advertising initiatives. Despite some uncertainties regarding consumer spending and tariffs, the company has mechanisms to safeguard its margins even if revenue falls short of expectations.
Furthermore, the management highlighted the early stages of a replacement cycle for computers and other electronics, which could drive sales as consumers upgrade their devices. Although there is caution among consumers, the anticipated retirement of Windows 10 is expected to boost hardware sales. The company’s guidance reflects optimism, with the potential for computing strength and stabilization in other product categories, which supports the Buy rating with an expected share price return of 24.3%.
In another report released on March 10, Jefferies also maintained a Buy rating on the stock with a $92.00 price target.
Based on the recent corporate insider activity of 61 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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