Best Buy's (BBY) Buy Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed a “buy” rating on Best Buy and kept its $78 price target, implying only modest upside from the current share price.
• Best Buy’s stock rose 3.9% to $77.64, while the company recently reported Q1 earnings and revenue above estimates, with revenue up 1.9% year over year.
• Analyst views remain mixed overall: Best Buy has a consensus “Hold” rating, even as several firms recently adjusted price targets and some highlighted improving sales momentum.

Best Buy (NYSE:BBY - Get Free Report)'s stock had its "buy" rating reaffirmed by DA Davidson in a research note issued to investors on Friday,Benzinga reports. They presently have a $78.00 price objective on the technology retailer's stock. DA Davidson's price objective would suggest a potential upside of 0.46% from the company's current price.

Several other brokerages have also commented on BBY. KeyCorp reaffirmed a "sector weight" rating on shares of Best Buy in a research report on Wednesday, March 4th. Wells Fargo & Company upped their price target on shares of Best Buy from $60.00 to $65.00 and gave the stock an "equal weight" rating in a research report on Thursday. HSBC dropped their price target on shares of Best Buy from $96.00 to $85.00 in a research report on Thursday, February 26th. UBS Group reissued a "neutral" rating and issued a $86.00 price objective (up from $85.00) on shares of Best Buy in a research report on Friday. Finally, The Goldman Sachs Group increased their price objective on shares of Best Buy from $59.00 to $62.00 and gave the stock a "sell" rating in a research report on Friday. Six investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Best Buy has a consensus rating of "Hold" and a consensus target price of $78.60.

Best Buy Trading Up 3.9%

BBY stock traded up $2.90 on Friday, hitting $77.64. 4,750,057 shares of the company were exchanged, compared to its average volume of 4,502,239. Best Buy has a twelve month low of $55.10 and a twelve month high of $84.99. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.11 and a quick ratio of 0.43. The business's fifty day moving average is $61.99 and its two-hundred day moving average is $66.80. The stock has a market capitalization of $16.36 billion, a price-to-earnings ratio of 15.41, a price-to-earnings-growth ratio of 1.59 and a beta of 1.22.

Best Buy (NYSE:BBY - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The technology retailer reported $1.28 EPS for the quarter, topping the consensus estimate of $1.22 by $0.06. Best Buy had a net margin of 2.56% and a return on equity of 49.17%. The firm had revenue of $8.94 billion during the quarter, compared to analyst estimates of $8.82 billion. During the same quarter in the prior year, the business posted $1.15 earnings per share. Best Buy'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, research analysts forecast that Best Buy will post 6.5 earnings per share for the current year.

Insider Buying and Selling at Best Buy

In related news, EVP Jason J. Bonfig sold 6,336 shares of the firm's stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $405,630.72. Following the completion of the sale, the executive vice president directly owned 79,137 shares of the company's stock, valued at approximately $5,066,350.74. This trade represents a 7.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Mathew Watson sold 3,298 shares of the firm's stock in a transaction 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 sale, the chief accounting officer directly owned 23,192 shares of the company's stock, valued at approximately $1,484,751.84. The trade was a 12.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 77,247 shares of company stock worth $4,945,353. 0.47% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Best Buy

Large investors have recently added to or reduced their stakes in the company. Torren Management LLC acquired a new stake in Best Buy during the 4th quarter valued at $25,000. MV Capital Management Inc. acquired a new stake in Best Buy during the 4th quarter valued at $25,000. Palisade Asset Management LLC acquired a new stake in Best Buy during the 3rd quarter valued at $25,000. Hillsdale Investment Management Inc. bought a new position in Best Buy during the 4th quarter valued at $29,000. Finally, Quest 10 Wealth Builders Inc. grew its holdings in Best Buy by 239.2% during the 4th quarter. Quest 10 Wealth Builders Inc. now owns 441 shares of the technology retailer's stock worth $30,000 after acquiring an additional 311 shares in the last quarter. 80.96% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Best Buy

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

• Positive Sentiment: Best Buy’s Q1 beat on earnings, revenue, and comparable sales suggests demand is stabilizing and the turnaround is gaining traction. Best Buy Reports First Quarter Results
• Positive Sentiment: Management kept FY27 guidance in place and signaled improving near-term sales, which investors typically view as confirmation that the recovery story is intact. Best Buy reiterates FY27 guidance after Q1 revenue and earnings rise
• Positive Sentiment: Several analysts raised price targets after the report, and Jefferies lifted its target to $89, signaling more upside despite mixed ratings across Wall Street. Best Buy downgrade, Dell upgraded: Wall Street's top analyst calls
• Neutral Sentiment: Best Buy also announced a quarterly dividend of $0.96 per share, which supports income-oriented investors but is less likely to drive the stock’s short-term move.
• Neutral Sentiment: Some firms remain cautious, with several ratings still at neutral/equal weight/hold and Goldman Sachs keeping a sell rating, suggesting the rally may face skepticism if sales momentum fades.
• Negative Sentiment: Analyst downgrades and cautious price targets indicate the market still sees risk that the current strength may not translate into sustained long-term growth. Best Buy downgrade, Dell upgraded: Wall Street's top analyst calls

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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