Citi Previews Upcoming BBY Analyst Day

Best Buy

will be holding an analyst day, its first in roughly five years, next week and Citi believes management will focus on high-growth opportunities, international opportunities, margin expansion initiatives and prospects for its big box format. Citi believes that this will be broken down into seven key themes: “1) Best Buy Mobile (growth & GM% implications, square footage growth, commoditization of the channel), 2) International growth (potential for CPW, BBY Europe, divestiture of Turkey operations & China), 3) Domestic competitive landscape (big box sq. ft. strategy, online initiatives), 4) Margin drivers (BBY Mobile, Attachment services, inventory growth), 5) Secular trends (initiatives in larger size TVs), 6) Use of cash (share buybacks, FCF, CapEx guidance), and 7) LT financial goals.” Citi maintains a Sell rating on BBY and a PT at $27. BBY closed yesterday at $29.99.