Morgan Stanley analyst Simeon Gutman has maintained their neutral stance on BBY stock, giving a Hold rating on November 7.
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Simeon Gutman has given his Hold rating due to a combination of factors influencing Best Buy Co’s current and future performance. The company is experiencing positive momentum from gaming and product upgrade cycles, which is expected to support a strong performance in the upcoming quarters. However, Gutman views the current price-to-earnings ratio as fair, suggesting limited upside potential unless Best Buy can sustain low single-digit growth, which could be challenging given the current market conditions.
Despite expectations for a beat in comparable sales and earnings per share, there are concerns about the company’s ability to expand its EBIT margin due to a mix of lower-margin products and early-stage profitability drivers like Best Buy Marketplace and Ads. Additionally, while there is optimism for continued strength in certain categories, potential softness in larger ticket items and a moderation in broader retail spending could offset these gains. These factors contribute to a cautious outlook, justifying the Hold rating.
In another report released on November 7, Truist Financial also maintained a Hold rating on the stock with a $79.00 price target.
Based on the recent corporate insider activity of 46 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.