Morgan Stanley Boosts Best Buy (NYSE:BBY) Price Target to $80.00

Key Points

• Morgan Stanley raised its price target on Best Buy (NYSE:BBY) from $72 to $80 while keeping an equal weight rating, implying about 6.9% upside from the current price.
• Best Buy recently beat quarterly expectations, reporting EPS of $1.28 versus $1.22 expected and revenue of $8.94 billion versus $8.82 billion forecast, with comparable sales rising 2.0%.
• Analyst sentiment remains mixed overall: the stock’s consensus rating is still Hold, with an average price target of $71.65, even as several firms have recently adjusted their targets.

Best Buy (NYSE:BBY - Get Free Report) had its price target lifted by investment analysts at Morgan Stanley from $72.00 to $80.00 in a research report issued on Friday,Benzinga reports. The firm currently has an "equal weight" rating on the technology retailer's stock. Morgan Stanley's price target suggests a potential upside of 6.89% from the company's current price.

Several other brokerages have also weighed in on BBY. DA Davidson set a $78.00 price objective on Best Buy in a report on Thursday, March 5th. Wedbush boosted their price target on Best Buy from $7.00 to $8.00 and gave the company an "outperform" rating in a research note on Tuesday, April 28th. Evercore set a $65.00 price target on Best Buy in a research note on Tuesday, April 14th. Weiss Ratings lowered Best Buy from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, May 7th. Finally, Citigroup decreased their price target on Best Buy from $69.00 to $60.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 12th. Eight equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $71.65.

Best Buy Price Performance

Shares of NYSE:BBY opened at $74.84 on Friday. Best Buy has a 1-year low of $55.10 and a 1-year high of $84.99. The firm has a market capitalization of $15.77 billion, a PE ratio of 14.85, a PEG ratio of 1.59 and a beta of 1.22. The business's 50 day moving average is $61.99 and its 200-day moving average is $66.80. The company has a current ratio of 1.11, a quick ratio of 0.43 and a debt-to-equity ratio of 0.39.

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

Insider Buying and Selling

In other Best Buy news, insider Todd G. Hartman sold 5,339 shares of the business's stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $341,802.78. Following the transaction, the insider owned 44,098 shares of the company's stock, valued at approximately $2,823,153.96. The trade was a 10.80% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Matthew M. Bilunas sold 11,356 shares of the business's stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $727,011.12. Following the completion of the transaction, the chief financial officer directly owned 76,884 shares in the company, valued at approximately $4,922,113.68. This represents a 12.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 77,247 shares of company stock valued at $4,945,353. Insiders own 0.47% of the company's stock.

Hedge Funds Weigh In On Best Buy

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. raised its position in shares of Best Buy by 1.3% during the fourth quarter. Vanguard Group Inc. now owns 24,255,320 shares of the technology retailer's stock worth $1,623,409,000 after acquiring an additional 307,905 shares during the last quarter. AQR Capital Management LLC raised its position in shares of Best Buy by 30.9% during the fourth quarter. AQR Capital Management LLC now owns 9,158,839 shares of the technology retailer's stock worth $613,001,000 after acquiring an additional 2,160,968 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of Best Buy by 2.2% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 7,452,642 shares of the technology retailer's stock worth $498,805,000 after acquiring an additional 160,713 shares during the last quarter. Invesco Ltd. raised its position in shares of Best Buy by 6.1% during the fourth quarter. Invesco Ltd. now owns 4,732,080 shares of the technology retailer's stock worth $316,718,000 after acquiring an additional 271,988 shares during the last quarter. Finally, Morgan Stanley raised its position in shares of Best Buy by 19.1% during the fourth quarter. Morgan Stanley now owns 3,778,294 shares of the technology retailer's stock worth $252,881,000 after acquiring an additional 605,911 shares during the last quarter. Institutional investors and hedge funds own 80.96% of the company's stock.

Key Headlines Impacting Best Buy

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

• Positive Sentiment: Best Buy topped Q1 estimates with adjusted EPS of $1.28 versus $1.22 expected, while revenue reached $8.94 billion versus $8.82 billion forecast. Best Buy Reports First Quarter Results
• Positive Sentiment: Comparable sales rose 2.0%, showing that customer demand improved after recent pressure in the electronics retail market. Best Buy Q1 Earnings Beat Estimates, Comparable Sales Rise 2%
• Positive Sentiment: Best Buy reaffirmed its full-year outlook and issued second-quarter sales guidance that appears to be holding up better than feared, which can support investor confidence. Best Buy stock pops on first quarter earnings beat
• Positive Sentiment: Jefferies raised its price target on BBY to $89 from $83 and kept a buy rating, reinforcing the bullish post-earnings move. Best Buy price target raised by Jefferies
• Neutral Sentiment: Best Buy announced a quarterly dividend of $0.96 per share, which supports the stock’s income appeal but is not a major near-term catalyst. Best Buy dividend announcement
• Neutral Sentiment: Unusual call-option activity suggests traders are positioning for more upside after the earnings beat. Stock Traders Buy High Volume of Best Buy Call Options

About Best Buy

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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