Truist Financial Forecasts Strong Price Appreciation for Best Buy (NYSE:BBY) Stock

Key Points

• Truist Financial raised its price target on Best Buy from $66 to $81 while keeping a hold rating, implying about 7.8% upside from the prior close.
• Best Buy reported better-than-expected quarterly results, with EPS of $1.28 topping estimates and revenue of $8.94 billion also exceeding forecasts. The company said revenue rose 1.9% year over year and kept FY2027 EPS guidance at $6.30-$6.60.
• Analyst sentiment remains mixed but generally constructive: the consensus rating is Hold, with an average price target of $78.60, while several firms recently lifted their targets into the $80s and $90s.

Best Buy (NYSE:BBY - Get Free Report) had its target price lifted by equities researchers at Truist Financial from $66.00 to $81.00 in a report released on Friday,MarketScreener reports. The firm presently has a "hold" rating on the technology retailer's stock. Truist Financial's price objective would suggest a potential upside of 7.82% from the company's previous close.

A number of other research analysts have also recently weighed in on the stock. Weiss Ratings cut shares of Best Buy from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, May 7th. UBS Group set a $86.00 target price on Best Buy and gave the company a "buy" rating in a report on Friday. Guggenheim reissued a "buy" rating and set a $90.00 price target on shares of Best Buy in a research report on Wednesday, March 4th. Daiwa Securities Group cut their price target on Best Buy from $80.00 to $68.00 and set a "neutral" rating for the company in a report on Thursday, March 5th. Finally, Jefferies Financial Group increased their price objective on Best Buy from $83.00 to $89.00 and gave the company a "buy" rating in a research note on Thursday. Seven research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Best Buy presently has a consensus rating of "Hold" and an average price target of $78.60.

Best Buy Stock Up 0.5%

Shares of NYSE:BBY opened at $75.12 on Friday. Best Buy has a fifty-two week low of $55.10 and a fifty-two week high of $84.99. 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 firm's 50-day simple moving average is $61.99 and its 200-day simple moving average is $66.80. The company has a market cap of $15.83 billion, a price-to-earnings ratio of 14.86, a PEG ratio of 1.59 and a beta of 1.22.

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

Insiders Place Their Bets

In other Best Buy news, CAO Mathew Watson sold 3,298 shares of Best Buy stock in a transaction dated Monday, March 23rd. The stock was sold at an average price of $64.02, for a total value of $211,137.96. Following the completion of the sale, the chief accounting officer owned 23,192 shares in the company, valued at $1,484,751.84. The trade was a 12.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Matthew M. Bilunas sold 11,356 shares of the company's stock in a transaction dated Monday, March 23rd. The shares were sold at an average price of $64.02, for a total transaction of $727,011.12. Following the transaction, the chief financial officer directly owned 76,884 shares of the company's stock, 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. Over the last 90 days, insiders have sold 77,247 shares of company stock valued at $4,945,353. 0.47% of the stock is currently owned by company insiders.

Institutional Trading of Best Buy

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Best Buy by 2.4% during the 3rd quarter. Vanguard Group Inc. now owns 23,947,415 shares of the technology retailer's stock valued at $1,810,904,000 after acquiring an additional 552,360 shares in the last quarter. Concurrent Investment Advisors LLC increased its holdings in Best Buy by 100.6% in the 4th quarter. Concurrent Investment Advisors LLC now owns 70,280 shares of the technology retailer's stock valued at $4,704,000 after purchasing an additional 35,239 shares in the last quarter. Bank of New York Mellon Corp raised its position in Best Buy by 2.3% in the third quarter. Bank of New York Mellon Corp now owns 1,754,844 shares of the technology retailer's stock valued at $132,701,000 after purchasing an additional 39,026 shares during the period. Allianz Asset Management GmbH lifted its stake in shares of Best Buy by 5.7% during the third quarter. Allianz Asset Management GmbH now owns 1,639,202 shares of the technology retailer's stock worth $123,956,000 after purchasing an additional 89,057 shares in the last quarter. Finally, PFA Pension Forsikringsaktieselskab acquired a new position in shares of Best Buy during the fourth quarter worth about $1,741,000. Hedge funds and other institutional investors own 80.96% of the company's stock.

Trending Headlines about 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

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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