Best Buy price target lowered to $70 from $75 at Wells Fargo

Wells Fargo lowered the firm’s price target on Best Buy (BBY) to $70 from $75 and keeps an Equal Weight rating on the shares. The firm believes sentiment is drifting lower into Q4 results as FY27 concerns build around harder compares, memory chip inflation and choppy market share. While shares are cheap, stimulus likely helps and EBIT margins should prove stable, Wells thinks underwriting material EPS upside in FY27 looks increasingly difficult.