UPDATE: Bank of America Cuts PO to $16 on Best Buy; Poor Sales and Margin Outlook Ahead of Q1

Bank of America reduces its price objective on Best Buy (NYSE: BBY) from $18 to $16 as it reiterates an Outperform rating on shares.

Bank of America comments, "Ahead of 1Q results, we are cutting our estimates on lower gross margin assumptions, as well as lower sales levels which, in turn, are expected to cause incrementally greater expense deleverage. Our 1Q EPS estimate is now $0.57 on (4)% corporate comps ($0.68 of a -3.5% comp prior). Our estimate compares with $0.59 and (2.9)% corporate comps last year, with a lower Y/Y share count lending support to earnings. Best Buy will report 1Q results on Tuesday, May 22, before the market open with a conference call following at 9am ET that morning."

BBY closed at $18.44 on Thursday.

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