In a report released today, Steven Zaccone from Citi maintained a Hold rating on Best Buy Co, with a price target of $70.00.
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Steven Zaccone has given his Hold rating due to a combination of factors influencing Best Buy Co’s current and future performance. The company reported a strong second quarter, primarily driven by the success of gaming products, particularly the Nintendo Switch 2, which exceeded market expectations. However, despite the positive results, there are challenges anticipated in the second half of the year, such as tougher comparisons in the fourth quarter and increasing pressure on gross margins due to tariffs.
To mitigate these pressures, Best Buy needs to enhance its margin benefits through its advertising and marketplace initiatives. While the risk/reward scenario appears balanced, there is potential for a more favorable outlook if revenue growth accelerates and the impact of tariffs is less severe than expected. The company’s maintained guidance suggests a wide range of possible outcomes for the fourth quarter, indicating uncertainty and justifying the Hold rating.
In another report released on August 26, Piper Sandler also maintained a Hold rating on the stock with a $75.00 price target.
Based on the recent corporate insider activity of 48 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.