Bank of America just raised its EUR/USD forecast
On Tuesday, Citi analyst Steven Zaccone increased the price target on Best Buy shares (NYSE: NYSE:BBY) to $105 from the previous $101, while reiterating a Buy rating for the company. The adjustment comes as Best Buy is expected to announce its earnings on March 4 before the market opens. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with shares currently trading at $88.70 and showing a P/E ratio of 15.1x. Best Buy has maintained dividend payments for 22 consecutive years, demonstrating strong financial stability.
Zaccone anticipates a modest outperformance in Best Buy’s fourth-quarter same-store sales (SSS) and earnings per share (EPS), citing high frequency data trends, field work, and positive remarks on electronics performance during the holiday season. He notes that while the journey to positive SSS growth has been challenging, with revenue declining 3% in the last twelve months, fiscal year 2026 is projected to be a turning point for the company.
Despite current negative investor sentiment and concerns regarding the ability to achieve positive comparable sales in FY26, as well as worries about tariff risks, Zaccone believes these factors are already accounted for in the company’s valuation. He argues that the risk/reward scenario remains attractive as the electronics sector shifts towards growth, appliances stabilize, and Best Buy’s market share performance improves.
Zaccone also highlights Best Buy’s margin execution, which he describes as best-in-class for the retail industry, regardless of the sales environment. This performance underpins his confidence in maintaining the Buy rating and raising the price target. The new target is based on approximately 14 times the projected earnings per share for FY27.
In other recent news, Piper Sandler has upgraded Tempur-Sealy, Wayfair (NYSE:W), and YETI stocks to "Overweight" due to a positive sales outlook, particularly for the first half of 2025. Tempur-Sealy’s Q4 industry sales are expected to be flat year-over-year, which would be the best quarter since Q4 2021, despite a downward adjustment in full-year sales and EPS reported in Q3. Wayfair’s Q4 sales estimate has been increased to 0% year-over-year, surpassing the consensus of -2%, with early 2025 supplier feedback suggesting sustained sales momentum. YETI is anticipated to achieve a 6.7% sales growth in 2025, driven by strong 2024 performance and upcoming product launches.
Loop Capital maintains a "Buy" rating for Best Buy, highlighting competitive pricing against Amazon (NASDAQ:AMZN) as a key factor in its positive outlook. Evercore ISI also maintains its "In Line" stance on Best Buy, citing a constructive trend in holiday shopping and a slight optimism in Q4 performance compared to Wall Street’s forecasts. Meanwhile, Walmart (NYSE:WMT) and Amazon reported record-breaking sales during Black Friday and Cyber Monday, with significant increases in online spending. Best Buy, however, experienced declines in sales during these events, although its shares have risen since Thanksgiving, reflecting investor optimism. KeyBanc reported a 14.6% increase in online sales on Black Friday, with in-store sales seeing a modest 0.7% rise, indicating a shift in consumer behavior towards online shopping.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.