JPMorgan cut Best Buy target, sees attractive entry point

JPMorgan lowered the firm’s price target on Best Buy (BBY) to $95 from $110 and keeps an Overweight rating on the shares. The company reported mixed results with a comp miss and slight earnings upside that was driven by a tax settlement, the analyst tells investors in a research note. The firm says Best Buy also guided down 11% for Q2, albeit only taking the year down to the lower-end of the prior range by assuming all tariffs that existed yesterday persist. JPMorgan believes Best Buy authorizes the credit card for the full amount of a pre-ordered item but does not officially charge it until the item is shipped, or ready for pickup. Data services like Bloomberg track authorizations, which could have set a higher Q1 comp expectation, the firm contends. It believes this data-driven miss creates an oversold stock. JPMorgan sees an attractive entry point on the earnings selloff amid a “trough valuation.” The stock in afternoon trading is down 8% to $65.81.