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UPDATE: Citigroup Reduces PT to $18 on Best Buy on Weak Fundamentals

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Citigroup reiterated its Neutral rating on Best Buy (NYSE: BBY) and reduced its price target from $21 to $18.

Citigroup commented, "In our opinion, while valuation may appear cheap at 5x forward earnings, BBY continues to suffer from macro, structural, and cyclical challenges that will likely negatively impact the trajectory of SSS and gross profit margins in the NT and LT. Challenges include: softness in all markets, a weak CE product cycle and mgt transition. Further, the co has lowered its annual earnings expectations and suspended guidance and share repos for FY13, thereby reducing earnings visibility."

Best Buy closed at $17.91 on Tuesday.

Latest Ratings for BBY

DateFirmActionFromTo
Jun 2016Longbow ResearchInitiates Coverage onNeutral
Jun 2016Credit SuisseDowngradesOutperformNeutral
May 2016Deutsche BankDowngradesBuyHold

View More Analyst Ratings for BBY
View the Latest Analyst Ratings

Posted-In: CitigroupAnalyst Color Price Target Intraday Update Analyst Ratings

 

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