US stock futures inch lower after Wall St marks fresh records on tech gains
Investing.com - Piper Sandler has reiterated its Neutral rating on Best Buy (NYSE:BBY) with a price target of $75.00 ahead of the retailer’s second-quarter earnings report expected Thursday. The specialty retail giant, currently trading at $74.32, maintains a GOOD financial health score according to InvestingPro analysis, with a notable 5.11% dividend yield and a 23-year track record of consistent dividend payments.
The research firm anticipates Best Buy will report quarterly comparable sales in line with expectations, projecting a modest decline of 0.5% for the second quarter.
Piper Sandler highlighted several unresolved questions that influenced its mid-July downgrade, including uncertainty about whether Windows 10 End of Life will accelerate PC sales starting in late October or merely maintain current trends.
Additional concerns include potential structural appliance share losses, competitive pressure in the TV market following Walmart’s acquisition of VIZIO, and questions about whether Best Buy’s recently launched Marketplace can become EBIT dollar accretive in the second half of the year.
The firm noted that while Best Buy Ads could become more accretive, this initiative has been in place for several years without meaningful positive developments, and macroeconomic factors such as housing improvement and tariff headwinds could impact second-half performance but appear to offset each other.
In other recent news, Best Buy Co. has launched a digital marketplace, significantly expanding its online product offerings. This new platform, powered by Mirakl, more than doubles the number of products available on BestBuy.com and the Best Buy App, introducing categories such as seasonal decor, automotive tech, and office products. Additionally, Best Buy has partnered with IKEA to pilot a shop-in-shop concept in select stores across Florida and Texas, integrating IKEA products with Best Buy appliances.
Piper Sandler has downgraded Best Buy’s stock rating from Overweight to Neutral, citing concerns over the lack of catalysts for sales or earnings growth in the near future. In leadership changes, Best Buy announced the departure of Senior Executive Vice President Damien Harmon, who will leave the company to pursue other interests. The company does not plan to fill his position, opting to distribute his responsibilities among existing executives. Furthermore, Neal Sample has been named as the new chief digital and technology officer, joining from Walgreens Boots Alliance Inc.
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