In a report released yesterday, Robert Ohmes from Bank of America Securities maintained a Sell rating on Best Buy Co, with a price target of $60.00.
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Robert Ohmes has given his Sell rating due to a combination of factors impacting Best Buy Co. The company is expected to face a sequential slowdown in sales, with observed sales declining and foot traffic remaining negative, despite some improvement over previous quarters. This slowdown is attributed to a deceleration in both observed transactions and average transaction value, particularly after a strong back-to-school season.
Furthermore, Best Buy is experiencing a slight contraction in gross margins due to a higher mix of lower-margin products and competitive pricing strategies. Although there is potential growth in gaming and mobile sectors, it is anticipated to be offset by continued weakness in appliances and consumer electronics, which remain highly promotional. Additionally, the company faces challenges from broader industry trends, market share pressures, and uncertainties around tariffs, which collectively contribute to the underperform rating.
Ohmes covers the Consumer Defensive sector, focusing on stocks such as Walmart, Target, and Costco. According to TipRanks, Ohmes has an average return of 6.8% and a 54.34% success rate on recommended stocks.