Best Buy price target lowered to $70 from $80 at Wedbush

Wedbush lowered the firm’s price target on Best Buy (BBY) to $70 from $80 and keeps a Neutral rating on the shares ahead of earnings. The firm sees downside risk to comps after a soft holiday sales period for consumer electronics despite elevated discounting. Forward guidance is the larger variable in Wedbush’s view, given the significant uncertainty around lingering memory supply shortages that likely depress PC demand and the broader consumer electronics category through at least the year. The firm braces for guidance that incorporates a low single digit comparable sales decline at the mid-point relative to consensus expectations for modest growth. Overall, while Wedbush believes expectations are low heading into the print, it sees limited catalysts to the upside.