The Goldman Sachs Group Forecasts Strong Price Appreciation for Best Buy (NYSE:BBY) Stock

Key Points

• Goldman Sachs raised its price target on Best Buy to $62 from $59, but kept a sell rating and still sees downside from the current share price.
• Analyst views on Best Buy remain mixed overall: recent target changes ranged from Wells Fargo cutting its target to $60 to UBS and Evercore setting much higher targets, leaving the consensus at Hold with an average target of $78.60.
• Best Buy’s latest earnings beat expectations, with EPS of $1.28 and revenue of $8.94 billion, while the company reaffirmed guidance and issued better-than-expected Q2 sales outlook, which has helped improve sentiment.

Best Buy (NYSE:BBY - Get Free Report) had its price target lifted by research analysts at The Goldman Sachs Group from $59.00 to $62.00 in a report released on Friday,MarketScreener reports. The brokerage currently has a "sell" rating on the technology retailer's stock. The Goldman Sachs Group's price objective suggests a potential downside of 17.47% from the company's current price.

Other equities analysts also recently issued reports about the company. Wells Fargo & Company lowered their price objective on Best Buy from $70.00 to $60.00 and set an "equal weight" rating on the stock in a research report on Thursday, May 14th. Citigroup lifted their target price on Best Buy from $60.00 to $79.00 and gave the company a "neutral" rating in a research note on Friday. UBS Group set a $86.00 price target on Best Buy and gave the stock a "buy" rating in a research note on Friday. BNP Paribas Exane boosted their target price on shares of Best Buy from $74.00 to $76.00 and gave the stock a "neutral" rating in a report on Friday. Finally, Evercore raised their target price on shares of Best Buy from $65.00 to $85.00 in a research note on Friday. Seven investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Best Buy currently has a consensus rating of "Hold" and an average target price of $78.60.

Best Buy Trading Up 0.5%

NYSE:BBY opened at $75.12 on Friday. The firm has a market capitalization of $15.83 billion, a price-to-earnings ratio of 14.86, a price-to-earnings-growth ratio of 1.59 and a beta of 1.22. 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 has a fifty day moving average price of $61.99 and a 200-day moving average price of $66.80. Best Buy has a one year low of $55.10 and a one year high of $84.99.

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 analysts' consensus estimates of $1.22 by $0.06. Best Buy had a return on equity of 49.17% and a net margin of 2.56%.The business had revenue of $8.94 billion during the quarter, compared to analysts' expectations of $8.82 billion. During the same quarter in the prior year, the business posted $1.15 earnings per share. The business's quarterly revenue was up 1.9% on a year-over-year basis. Best Buy has set its FY 2027 guidance at 6.300-6.600 EPS. Sell-side analysts forecast that Best Buy will post 6.5 EPS for the current year.

Insider Buying and Selling at Best Buy

In other Best Buy news, CEO Corie S. Barry sold 42,869 shares of Best Buy stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $64.02, for a total value of $2,744,473.38. Following the completion of the transaction, the chief executive officer directly owned 523,138 shares of the company's stock, valued at $33,491,294.76. This trade represents a 7.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Matthew M. Bilunas sold 11,356 shares of the business's stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total transaction of $727,011.12. Following the completion of the sale, the chief financial officer owned 76,884 shares in the company, valued at approximately $4,922,113.68. This trade represents a 12.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 77,247 shares of company stock valued at $4,945,353 over the last ninety days. Corporate insiders own 0.47% of the company's stock.

Institutional Trading of Best Buy

A number of institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its holdings in shares of Best Buy by 1.3% in the 4th 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 boosted its position in Best Buy by 30.9% during the 4th quarter. AQR Capital Management LLC now owns 9,158,839 shares of the technology retailer's stock valued at $613,001,000 after acquiring an additional 2,160,968 shares in the last quarter. Charles Schwab Investment Management Inc. lifted 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 valued at $498,805,000 after buying an additional 160,713 shares during the last quarter. Invesco Ltd. boosted its stake in Best Buy by 6.1% in the fourth quarter. Invesco Ltd. now owns 4,732,080 shares of the technology retailer's stock valued at $316,718,000 after acquiring an additional 271,988 shares in the last quarter. Finally, Morgan Stanley grew its holdings in Best Buy by 19.1% in the fourth quarter. Morgan Stanley now owns 3,778,294 shares of the technology retailer's stock worth $252,881,000 after purchasing an additional 605,911 shares during the last quarter. 80.96% of the stock is currently owned by institutional investors.

Key Best Buy News

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

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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