Wells Fargo & Company Forecasts Strong Price Appreciation for Best Buy (NYSE:BBY) Stock

Key Points

• Wells Fargo raised its Best Buy price target from $85 to $95 but maintained an “equal weight” rating; the new target implies 4.32% downside from the prior close.
• Analysts overall hold a “Hold” consensus, with an average price target of $86.65. Ratings include six Buys, 12 Holds, and two Sells, alongside one Strong Buy.
• Best Buy’s latest quarterly results beat expectations: EPS was $1.47 versus the $1.39 consensus, and revenue of $9.78 billion topped estimates of $9.59 billion.

Best Buy (NYSE:BBY - Get Free Report) had its price target lifted by analysts at Wells Fargo & Company from $85.00 to $95.00 in a report issued on Friday, Benzinga reports. The firm currently has an "equal weight" rating on the technology retailer's stock. Wells Fargo & Company's target price would indicate a potential downside of 4.32% from the stock's previous close.

Other research analysts have also issued research reports about the company. Evercore set a $100.00 target price on Best Buy in a research report on Tuesday, October 27th. Jefferies Financial Group downgraded Best Buy from a "buy" rating to a "hold" rating and reduced their price target for the stock from $89.00 to $85.00 in a report on Wednesday, August 5th. Wedbush reissued a "buy" rating on shares of Best Buy in a research note on Monday, August 24th. Wall Street Zen raised Best Buy from a "hold" rating to a "buy" rating in a research note on Sunday, October 11th. Finally, Piper Sandler boosted their price objective on Best Buy from $77.00 to $85.00 and gave the company a "neutral" rating in a report on Thursday, August 20th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Best Buy presently has an average rating of "Hold" and an average target price of $86.65.

Best Buy Trading Down 2.0%

Shares of BBY opened at $99.29 on Friday. Best Buy has a twelve month low of $55.10 and a twelve month high of $103.54. The company has a market cap of $20.82 billion, a P/E ratio of 16.52, a P/E/G ratio of 2.53 and a beta of 1.20. The company has a current ratio of 1.12, a quick ratio of 0.41 and a debt-to-equity ratio of 0.36. The company's fifty day simple moving average is $91.25 and its 200-day simple moving average is $75.93.

Best Buy (NYSE:BBY - Get Free Report) last released its quarterly earnings results on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, topping analysts' consensus estimates of $1.39 by $0.08. The firm had revenue of $9.78 billion during the quarter, compared to analysts' expectations of $9.59 billion. Best Buy had a net margin of 3.01% and a return on equity of 48.14%. The firm's revenue for the quarter was up 3.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.28 EPS. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, analysts expect that Best Buy will post 6.81 EPS for the current year.

Insider Transactions at Best Buy

In other news, EVP Kathleen Scarlett sold 116,062 shares of the firm's stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $92.15, for a total transaction of $10,695,113.30. Following the transaction, the executive vice president directly owned 116,173 shares of the company's stock, valued at approximately $10,705,341.95. This trade represents a 49.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Chairman Richard Schulze sold 300,000 shares of Best Buy stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $92.51, for a total transaction of $27,753,000.00. The disclosure for this sale is available in the SEC filing. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Best Buy

Several hedge funds have recently made changes to their positions in the company. R Squared Ltd purchased a new position in shares of Best Buy during the third quarter worth $282,000. CENTRAL TRUST Co acquired a new position in Best Buy during the third quarter valued at $343,000. Fifth Third Bancorp boosted its holdings in Best Buy by 220.0% in the third quarter. Fifth Third Bancorp now owns 104,850 shares of the technology retailer's stock valued at $9,252,000 after purchasing an additional 72,083 shares during the last quarter. Bayban boosted its holdings in Best Buy by 63.0% in the third quarter. Bayban now owns 815 shares of the technology retailer's stock valued at $72,000 after purchasing an additional 315 shares during the last quarter. Finally, King Luther Capital Management Corp purchased a new stake in Best Buy in the third quarter valued at $832,000. 80.96% of the stock is currently owned by hedge funds and other institutional investors.

About Best Buy

Best Buy Co, Inc is a specialty retailer of technology products and services headquartered in Richfield, Minnesota. The company sells consumer electronics, computing and mobile products, entertainment products, appliances, furniture, and related accessories through its retail stores, websites, and other sales channels.

Best Buy also provides technology-related services, including product installation, repair, technical support, delivery, and in-home consultation. Its services are offered through brands and operations such as Geek Squad, while the company also provides membership and protection programs designed to support customers after purchase.

The company serves customers primarily in the United States and Canada.

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