Bank of America Lowers PO on Best Buy to $22
Bank of America has published a research report on Best Buy (NYSE: BBY) and has lowered the price target from $23 to $22 after the company reported December sales that came in below analyst expectations.
In the report, Bank of America writes, "Best Buy reported December comps of (1.2)%, versus (4.0)% last year. We note that this was below our expectations for flattish/slightly positive comps and our total 4Q comp estimate of 1.5%. Comps were composed of (0.4)% in the domestic segment and (4.3)% within international. Total company revenue was flat at $8.4 billion. Management noted that traffic was below expectations until the week before Christmas which caused the decline. As expected, the best performing domestic categories were Computing & Mobile Phones (+13.4% comp) and Appliances (+14.3%), while Entertainment posted the lowest comp of (19.5)%."
Bank of America maintains its Underperform rating on Best Buy, which is currently trading up $1.03 from yesterday's $23.43 closing price.
