BBY Stock In Spotlight After Slew Of Price Target Reductions Post Disappointing Q3 Show: Retail Optimism Stays Intact

Consumer electronics retailer Best Buy Co. Inc. ($BBY) received a slew of price target reductions on Friday after the firm reported disappointing third-quarter results.

Citi analyst Steven Zaccone reportedly lowered the firm’s price target to $101 from $109, while keeping a ‘Buy’ rating on the shares.

Although the brokerage believes the "choppy" macro backdrop is slowing the consumer electronics recovery, it noted that "this is a temporary push to the right for positive SSS and not a reason to throw in the towel.”

Wells Fargo, too, lowered its price target on the stock to $89 from $95, while keeping an ‘Equal Weight’ rating on the shares. The brokerage’s 2025 earnings per share (EPS) inched lower with the looming tariff/macro uncertainty.

Interestingly, although UBS lowered its price target on Best Buy to $115 from $123, while keeping a ‘Buy’ rating on the shares, the brokerage still sees a compelling risk-reward opportunity.

Earlier this week, Best Buy announced its third-quarter report that saw revenue decline over 3% year-over-year (YoY) to $9.445 billion compared to an analyst estimate of $9.63 billion.

Earnings per share (EPS) came in at $1.26 versus an estimated $1.29, but net earnings rose nearly 4% YoY to $273 million during the quarter.

For the full-year 2025, the company expects revenue of $41.1 billion to $41.5 billion, compared to a prior guidance of $41.3 billion to $41.9 billion. Comparable sales are expected to decline 2.5% to 3.5% versus a prior guidance of a decline of 1.5% to 3%.

Despite the slew of price target reductions, shares of Best Buy were trading in the green during Friday’s pre-market while retail sentiment on Stocktwits inched up into the ‘bullish’ territory (64/100) from ‘neutral’ a day ago.

Best Buy’s Sentiment Meter and Message Volume as of 9:05 a.m. ET on Nov. 29, 2024 | Source: Stocktwits

Meanwhile, shares of Best Buy have gained over 14% since the beginning of the year, underperforming the benchmark indices.

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