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On The Brink Of Best Buy's Q2, Barclays Stays Bullish

On The Brink Of Best Buy's Q2, Barclays Stays Bullish

Ahead of Best Buy Co Inc (NYSE: BBY)'s second-quarter earnings report set for Tuesday, Barclays is increasing its estimates on the quarter as well as estimates for fiscal year 2018 and 2019.

Flirting with new 52-week highs last week, Best Buy historically has taken share amid the ongoing industry decline.

This quarter appears no different, leading Barclays analyst Matthew McClintock to take a bullish stance heading into the quarter due to many positive reads across categories, including entertainment, electronics and appliances.

“We note that BBY guided for acceleration into 2Q, driven by momentum from the end of 1Q, including the later launch of mobile that would push into 2Q,” said McClintock (see his track record here).

Related Link: Is The Ipad Suddenly Cool Again?

Microsoft Corporation (NASDAQ: MSFT)'s expected entrance into the Connected Home market with its HomeHub launch in September could be a potential catalyst for Best Buy in the second half of the year.

The strength of Nintendo Co., Ltd (ADR) (OTC: NTDOY) Switch gaming console could also benefit Best Buy’s entertainment comps, after Target Corporation (NYSE: TGT) noted a double-digit growth in video games driven by the Switch.

Apple Inc. (NASDAQ: AAPL), noting that iPad sales wereup 15 percent year over year, also bodes well for Best Buy.

Barclays maintains a Overweight rating on Best Buy with a $65 price target.

Image Credit: By Ivan Oyarzun from vancouver, canada - best buy minus one, CC BY 2.0, via Wikimedia Commons

Latest Ratings for BBY

Apr 2019UpgradesHoldBuy
Mar 2019UpgradesPerformOutperform
Mar 2019Initiates Coverage OnIn-Line

View More Analyst Ratings for BBY
View the Latest Analyst Ratings

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