JPMorgan: Outlook for Best Buy Challenged

Yesterday, shares of Best Buy

tumbled after the company projected dismal sales projections for FH1 2016 (which starts in February), despite having relatively strong holiday sales. Shares fell 14 percent to $34.30. JPMorgan's Rod Hall says that Best Buy's main issue is not demand, but that profits will remain strained as the company sees a need to continuously undercut its competitors on price. He says this translates to good UHD TV sales and could be a positive for Corning Incorporated

. The company is projecting comps to be flat to low negative single digits over the first half of the fiscal year, while operating income will fall 0.30-0.50 percent.