Analyst Michael Lasser of UBS maintained a Buy rating on Best Buy Co, boosting the price target to $96.00.
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Michael Lasser has given his Buy rating due to a combination of factors that suggest a positive outlook for Best Buy Co. Firstly, the company is experiencing favorable top-line momentum driven by strong product innovation and consumer demand for device upgrades. This is complemented by Best Buy’s strategic initiatives, such as increased vendor labor investment and the launch of its U.S. marketplace, which are expected to sustain comparable sales growth.
Additionally, tariffs have not significantly impacted Best Buy’s costs or demand, as average selling prices remained stable despite exposure to tariffs. Encouraging trends in key categories like TVs and computing further support this resilience. Lastly, Best Buy’s efforts in cost savings and developing alternative revenue streams could enhance margins, with potential for margin recapture towards pre-COVID levels. These elements collectively create an optimistic setup for the company, potentially leading to positive estimate revisions and stock appreciation.
According to TipRanks, Lasser is a 5-star analyst with an average return of 13.0% and a 63.77% success rate. Lasser covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Dick’s Sporting Goods, and Lowe’s.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $94.00 price target.