ISI Group Reiterates Hold, $25 Base Case on Best Buy

ISI Group reiterates its Hold rating and $25 base case on Best Buy

following CEO Brian Dunn's departure. ISI Group says, "We view the mutually agreed upon departure of Brian Dunn as CEO as an indication that the board wants more strategic change faster. Brian – while well respected internally and a strong store operator – appears to have lacked the fresh perspective the board wanted. We are surprised by the timing given Brian's departure came just two weeks after mgmt announced a restructuring to confront the secular challenges. That said, a step back in sales trends in Q4, and continued gross margin decline are just the latest signs of secular pressure, indicating more urgency and fresh perspective is needed." BBY closed at $23.46 a share yesterday.