Several analysts raised the price target on Best Buy Co., Inc. (NYSE:BBY) following better-than-expected second-quarter financial results reported Thursday.
Best Buy reported fiscal second-quarter adjusted EPS of $1.34, beating the street view of $1.16, and sales of $9.29 billion beat the analyst consensus of $9.24 billion.
The company raised the fiscal 2025 adjusted EPS outlook to $6.10—$6.35 (prior $5.75-$6.20) vs. the $6.08 estimate and cut the high end of its prior revenue outlook to $41.3 billion-$41.9 billion (prior $41.3 billion—$42.6 billion) vs. the $41.81 billion estimate.
J.P. Morgan analyst Christopher Horvers maintained an Overweight rating and raised the price target from $101 to $111.
The analyst notes the pull-forward in spending on computing, TVs, and appliances is ending, with a higher installed base, supporting a soft landing this year.
Additionally, the analyst projects that Best Buy will continue to benefit from ASP growth as AI adoption in consumer electronics advances.
The analyst says the pathway to a 5% operating margin (up from 4.1% last year) is achievable, with the potential for 6% when key categories, especially home theater, rebound.
Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating and raised the price target to $115 from ...
