Market Overview

Best Buy Has Proven It Can Weather The Amazon Onslaught

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Best Buy Has Proven It Can Weather The Amazon Onslaught

Amazon.com, Inc. (NASDAQ: AMZN) is no longer killing Best Buy Co Inc (NYSE: BBY) with lower prices, and investors are taking note of it. Loop Capital Markets analyst Anthony Chukumba believes this should allow Best Buy to gain a larger market share, and he has reiterated his Buy rating along with a $72 price target.

Is Amazon Really So Much Cheaper?

Key Metrics (Based on a Loop Capital Markets Survey):

  • Average price difference: 5.7 percent.
  • Median price differential: 0.2 percent.
  • Items that are more expensive: 68 percent.
  • Items that are less expensive: 6 percent.
  • Items that are the same price: 26 percent.
  • Most competitive pricing item: Televisions.

These numbers show that Best Buy can remain competitive with Amazon, according to Chukumba (see Anthony Chukumba's track record here). He stated, “We believe Best Buy has definitively proven it has weathered the "Amazon onslaught" through a number of savvy moves over the past few years, including lowering prices, dramatically overhauling its e-commerce operations and supply chain, and improving the in-store experience.”

Other Ratings From The Street

  • Bank Of America: Upgraded to Buy with a $58 price target April 25.
  • Piper Jaffray: Upgraded to Overweight with no price target on March 27.
  • Bernstein: Initiated Coverage at Underperform on Feb. 7.

Related Benzinga Links:

Netflix Vs. Amazon Prime: The Battle For Apple TV Screen Time

Best Buy Compares Favorably To Walmart, But Is 'Much Cheaper'
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Image Credit: By Raysonho @ Open Grid Scheduler / Grid Engine (Own work) [CC0], via Wikimedia Commons

Latest Ratings for AMZN

DateFirmActionFromTo
Feb 2020Aegis CapitalMaintainsBuy
Feb 2020CitigroupMaintainsBuy
Jan 2020CFRAMaintainsBuy

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Posted-In: Anthony ChukumbaAnalyst Color Long Ideas News Price Target Reiteration Analyst Ratings Trading Ideas Best of Benzinga

 

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