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Why Street Sentiment On Best Buy May Depend On Apple

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Why Street Sentiment On Best Buy May Depend On Apple

Apple Inc. (NASDAQ: AAPL)'s status as the most valuable company in the world has far reaching implications for other publicly traded companies in the market.

Wall Street sentiment surrounding Best Buy Co Inc (NYSE: BBY) likely will revolve around the iPhone 7 sales performance at the electronic retailer’s stores when the company reports its fourth-quarter results on March 1.

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Analyst Commentary

Analyst’s at Loop Capital are expecting an earnings beat in the upcoming quarter primarily driven by mobile sales, with the iPhone being the key catalyst.

“We believe earnings upside will primarily be driven by strong mobile sales — particularly given Apple’s better-than-expected 1Q 2017 iPhone sales and Samsung’s bullish 4Q 2016 mobile commentary,” Loop stated.

Best Buy is also expected to have better mobile attachment sales from wireless headphone sales since Apple infamously left the headphone jack off the latest iPhone release.

Catalysts To Watch

  • Continued market share gains.
  • Managements expectation of a mobile “Supercycle.”
  • Growing anticipation of a 10th anniversary iPhone edition later this year.
  • Continued strength in e-commerce sales.
  • A step up in stockholder returns, increased share repurchases.
  • A third consecutive 4Q special dividend.
  • Loop Capital maintains a Buy rating on Best Buy with a $58 price target.

    Image Credit: By Ildar Sagdejev (Specious) - Own work, GFDL, via Wikimedia Commons

    Latest Ratings for AAPL

    DateFirmActionFromTo
    Nov 2020Loop CapitalUpgradesHoldBuy
    Oct 2020Raymond JamesMaintainsOutperform
    Oct 2020Piper SandlerMaintainsOverweight

    View More Analyst Ratings for AAPL
    View the Latest Analyst Ratings

     

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