Credit Suisse's Seth Sigman lowered his rating on Best Buy Co Inc BBY from Outperform to Neutral as his concerns about second half of 2016 top line expectations grow. Additionally, the analyst lowered his price target from $36.50 to $31.00.
Best Buy's mobile category "may not deliver the improvement needed to hit Q4 comps estimates," Sigman stated. Secondly, Best Buy is lapping market share benefits from companies such as Sears Holdings Corp SHLD; these benefits may become less notable this year and next. The main concern is that the expectations assume improvement in Q4, but visibility is becoming cloudy.
The analyst is confident in the management team and its transformation strategy for the company that has produced strong results in difficult periods. With that said as sales are an important part of the "investment story" of Best Buy, Sigman expects decreased performance by comps and their respective sales.
Shares of Best Buy were trading up about a percent at $29.61 at time of writing.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
