Best Buy (NYSE:BBY) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised Best Buy’s price target from $60 to $79 while keeping a neutral rating, implying about 5% upside from the stock’s current price.
• Best Buy’s latest quarterly results beat expectations, with EPS of $1.28 versus $1.22 expected and revenue of $8.94 billion above estimates, while the company maintained full-year guidance and gave stronger-than-expected Q2 sales outlook.
• Analyst sentiment remains mixed overall: Best Buy has a consensus Hold rating, but several firms recently lifted targets after the earnings report, signaling optimism despite some bearish calls from other analysts.

Best Buy (NYSE:BBY - Get Free Report) had its target price lifted by stock analysts at Citigroup from $60.00 to $79.00 in a note issued to investors on Friday,MarketScreener reports. The firm currently has a "neutral" rating on the technology retailer's stock. Citigroup's price objective would suggest a potential upside of 5.16% from the stock's current price.

Several other equities research analysts have also commented on BBY. Wedbush upped their price target on shares of Best Buy from $70.00 to $75.00 and gave the company a "neutral" rating in a research report on Friday. Daiwa Securities Group lowered their price target on Best Buy from $80.00 to $68.00 and set a "neutral" rating on the stock in a report on Thursday, March 5th. The Goldman Sachs Group cut shares of Best Buy from a "buy" rating to a "sell" rating and set a $59.00 price objective on the stock. in a research report on Monday, April 13th. KeyCorp reaffirmed a "sector weight" rating on shares of Best Buy in a report on Wednesday, March 4th. Finally, Weiss Ratings cut Best Buy from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, May 7th. Seven investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Best Buy has a consensus rating of "Hold" and an average price target of $78.60.

Best Buy Stock Performance

Shares of BBY stock opened at $75.12 on Friday. The company has a quick ratio of 0.43, a current ratio of 1.11 and a debt-to-equity ratio of 0.39. The company has a 50 day moving average price of $61.99 and a 200-day moving average price of $66.80. Best Buy has a 52 week low of $55.10 and a 52 week high of $84.99. The firm has a market capitalization of $15.83 billion, a PE ratio of 14.86, a P/E/G ratio of 1.59 and a beta of 1.22.

Best Buy (NYSE:BBY - Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The technology retailer reported $1.28 earnings per share for the quarter, beating analysts' consensus estimates of $1.22 by $0.06. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. The company had revenue of $8.94 billion for the quarter, compared to the consensus estimate of $8.82 billion. During the same quarter in the prior year, the firm earned $1.15 earnings per share. The firm's revenue for the quarter was up 1.9% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. As a group, equities research analysts expect that Best Buy will post 6.5 earnings per share for the current year.

Insider Activity at Best Buy

In other news, CAO Mathew Watson sold 3,298 shares of the firm's stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $211,137.96. Following the transaction, the chief accounting officer directly owned 23,192 shares of the company's stock, valued at approximately $1,484,751.84. This trade represents a 12.45% 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, CEO Corie S. Barry sold 42,869 shares of Best Buy stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $2,744,473.38. Following the sale, the chief executive officer directly owned 523,138 shares of the company's stock, valued at $33,491,294.76. This represents a 7.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 77,247 shares of company stock worth $4,945,353 over the last ninety days. 0.47% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC lifted its holdings in shares of Best Buy by 99.8% in the 3rd quarter. AQR Capital Management LLC now owns 6,997,871 shares of the technology retailer's stock worth $525,120,000 after buying an additional 3,496,254 shares during the period. Norges Bank purchased a new position in shares of Best Buy during the fourth quarter valued at $174,685,000. Schroder Investment Management Group raised its holdings in shares of Best Buy by 378.8% in the fourth quarter. Schroder Investment Management Group now owns 3,096,015 shares of the technology retailer's stock valued at $207,216,000 after acquiring an additional 2,449,342 shares in the last quarter. Hsbc Holdings PLC lifted its stake in Best Buy by 104.1% in the fourth quarter. Hsbc Holdings PLC now owns 2,020,539 shares of the technology retailer's stock worth $135,685,000 after acquiring an additional 1,030,544 shares during the period. Finally, KBC Group NV lifted its stake in Best Buy by 293.6% in the fourth quarter. KBC Group NV now owns 1,052,805 shares of the technology retailer's stock worth $70,464,000 after acquiring an additional 785,294 shares during the period. 80.96% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Best Buy

Here are the key news stories impacting Best Buy this week:

• Positive Sentiment: Best Buy delivered a clean Q1 beat on earnings and revenue, with positive comparable sales growth and improving margins. Best Buy (BBY) Beats Earnings Expectations, Shares Climb 15.8%
• Positive Sentiment: The company maintained its full-year guidance and issued Q2 sales guidance that came in better than expected, reinforcing confidence in the turnaround. Best Buy Reports First Quarter Results
• Positive Sentiment: Analyst sentiment improved after the report, with Jefferies raising its price target to $89 and Morgan Stanley lifting its target to $80, signaling additional upside. Analyst price target updates for Best Buy
• Neutral Sentiment: Unusual call option activity suggests traders are positioning for more volatility and continued momentum in BBY. Stock Traders Buy High Volume of Best Buy Call Options NYSE: BBY
• Neutral Sentiment: Best Buy also announced a quarterly dividend of $0.96 per share, which may appeal to income-focused investors. Best Buy dividend announcement

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.

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